Slide 1: 2Q 2018
2Q 2018 Fornebu, July 12, 2018 Luis Araujo and Svein Stoknes © 2018 Aker Solutions
Slide 2: Agenda | 2Q 2018
Agenda | 2Q 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 Second-Quarter Results 2018 July 12, 2018 Slide 2
Slide 3: Main Developments
Main Developments Major projects progress as planned Johan Sverdrup ■ Activity is picking up, though ■ Top and bottom lines ■ Tendering activity steady market remains competitive increase ■ Front-end demand remains ■ Major projects progressing ■ Order intake almost strong as planned doubles versus a
Slide 4: Key Figures | 2Q 2018
Key Figures | 2Q 2018 Revenue EBITDA Order Intake Order Backlog 6.3 NOK BILLION 439 NOK MILLION 5.7 NOK BILLION 37.0 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 0 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 2Q 17 3Q 17 4Q 17 1Q
Slide 5: New Orders
New Orders Equinor Equinor Total Photo: Equinor Partnering with Kvaerner to deliver Topside modification contract for Order for subsea system for modifications of Johan Sverdrup phase 3 of the Troll development Dalia offshore Angola riser platform and field center offshore Norway Perenco UK Norcem M
Slide 6: Strong Demand for Early-Phase Capabilities
Strong Demand for Early-Phase Capabilities ■ Awarded 35 front-end contracts, resulting in a total 1H 2018 1H 2017 of 73 for the first half of the 73 71 year Total front-end ■ Almost a third are for awards projects outside Norway ■ Many are for large and 6 17 complex projects Concept studies ■ 6 conc
Slide 7: Digital Solutions to Drive Value
Digital Solutions to Drive Value © 2018 Aker Solutions
Slide 8: Connecting Products
Connecting Products © 2018 Aker Solutions
Slide 9: All-Electric Subsea Systems
All-Electric Subsea Systems Longer tiebacks Real-time insight Less infrastructure © 2018 Aker Solutions
Slide 10: 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 11: Agenda | 2Q 2018
Agenda | 2Q 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 Second-Quarter Results 2018 July 12, 2018 Slide 11
Slide 12: 2Q 2018 | Income Statement
2Q 2018 | Income Statement (NOK million) 2Q 2018 2Q 2017 1H 2018 1H 2017 2017 ■ Revenue for 2Q 2018 up 15% year-on-year Revenue 6 254 5 425 11 737 10 598 22 461 ■ Reflecting higher activity in Field Design EBITDA 439 305 864 660 1 519 and Subsea, as well as in Services EBITDA margin 7,0% 5,6% 7,4% 6
Slide 13: 2Q 2018 | Cashflow and Financial Position
2Q 2018 | Cashflow and Financial Position ■ Cashflow from operations NOK 318 million Debt Maturity Profile1 NOK million ■ Working capital strong at minus NOK 1,415 million 6 000 Drawn debt Undrawn credit facilities ■ Net debt NOK 247 million and leverage 0.2x 4 000 ■ Gross debt of NOK 2.8 billion 5
Slide 14: Projects
Projects ■ Continued solid project execution ■ EBIT margin1 of 4.2% vs 3.8% a year earlier ■ Newly awarded work in early phases of execution ■ Solid order intake of NOK 5.0 billion, equal to ■ Revenue up 15% vs last year to NOK 4.9 billion 1.0x book-to-bill ■ EBITDA margin1 of 6.7% vs 7.0% a year ea
Slide 15: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Subsea with continued solid project execution ■ Solid Brownfield activity across several geographies ■ Revenue rose 11% to NOK 2.1 billion vs year earlier ■ Revenue rose 19% to NOK 2.8 billion vs year earlier ■ Order intake of NOK 1.1 billion, equal to ■ S
Slide 16: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 9.9% vs 8.8% a year earlier ■ Revenue rose 16% vs last year to NOK 1.3 billion ■ Order intake of NOK 0.7 billion, equal to ■ EBITDA margin1 increased to 13.0% vs 12.7% a 0.5x book-to-bill year earlier ■ Order backlog
Slide 17: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 2Q 2018 Order Backlog by Execution Date NOK billion Order Backlog and Intake Evolution NOK billion 14.1 Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog Services backlog 11.7 37.6 37.0 34.6 30 3.1 30.7 2.2
Slide 18: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and ■ Positive long-term offshore, Cashflow deepwater outlook ■ Capex and R&D ≈ 2% of annual ■ Markets remain challenging but revenue, with flexibility increasing signs of a gradual recovery ■ Working capital likely to fluctuate ■ Steady tendering
Slide 19: Agenda | 2Q 2018
Agenda | 2Q 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 Second-Quarter Results 2018 July 12, 2018 Slide 19
Slide 20: Additional Information
Additional Information © 2018 Aker Solutions Second-Quarter Results 2018 July 12, 2018 Slide 20
Slide 21: Special Items
Special Items NOK million Special items (EBITDA) 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 Onerous leases 4 39 39 82 - 6 - 33 40 - - Restructuring 19 0 130 163 (1) 81 8 (2) 86 7 5 Non-qualifying hedges (11) (11) (18) (44) 3 4 10 (6) 10 (3) (4) (Gain) los
Slide 22: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 Revenue 6 969 5 987 6 138 25 557 5 173 5 425 5 419 6 444 22 461 5 483 6 254 Operating expenses (6 405) (5 509) (5 759) (23 628) (4 817) (5 120) (5 017) (
Slide 23: Balance Sheet
Balance Sheet NOK million Assets 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Property, plant and equipment 3 934 3 735 3 808 3 721 3 564 3 341 3 316 3 077 2 977 Intangible assets 6 306 6 305 6 314 6 280 6 525 6 344 6 447 6 343 6 290 Financial assets (non-current) 16 67 13
Slide 24: Cashflow
Cashflow NOK million Cashflow 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 EBITDA continuing operations 563 477 380 1 929 355 305 401 458 1 519 425 439 Change in cashflow from operating activities (1 094) (769) 1 081 (1 617) (257) (762) (615) 702 (932) 107
Slide 25: Split Per Segment
Split Per Segment NOK million Revenue 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 Projects 5 474 5 003 5 100 20 627 4 066 4 232 4 184 5 179 17 660 4 239 4 862 Services 1 449 1 019 1 057 5 001 1 068 1 156 1 165 1 170 4 560 1 159 1 337 Other 48 (9) 25 88 41
Slide 26: Split Per Segment
Split Per Segment NOK million NCOA 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Projects (1 309) (223) (1 297) (810) (239) 151 (712) (1 350) (1 540) Services 1 493 824 921 640 603 595 511 550 646 Other (283) (185) (528) (803) (818) (731) (643) (622) (521) NCOA (100) 416 (9
Slide 27: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 Projects 436 393 387 1 602 269 295 323 405 1 292 322 328 Services 176 116 168 618 152 147 157 151 607 135 173 Other (23) (37) (16) (
Slide 28: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 Subsea 3 360 2 873 2 693 11 917 2 182 1 883 1 801 2 471 8 336 1 956 2 084 Field Design 2 130 2 133 2 414 8 751 1 887 2 353 2 386 2 776 9 402 2 284 2 810 Elim
Slide 29: © 2018 Aker Solutions
© 2018 Aker Solutions
Slide 30: 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