Slide 1: 3Q16
3Q16 Fornebu, October 28, 2016 Luis Araujo and Svein Stoknes © 2016 Aker Solutions |
Slide 2: Agenda | 3Q 2016
Agenda | 3Q 2016 Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 2
Slide 3: Key Developments | 3Q 2016
Key Developments | 3Q 2016 Solid financial position Major projects with liquidity buffer of progress as planned NOK 7.3 billion MMO wins several Global improvement Aker Solutions, Aker BP orders in Norway program ahead of Company reorganization and Subsea 7 form Subsea secures global s
Slide 4: Aker Solutions to buy majority stake in C.S.E. to enter Brazilian brownfield market
Aker Solutions to buy majority stake in C.S.E. to enter growing Brazilian brownfield market © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 4
Slide 5: Key Figures | 3Q 2016
Key Figures | 3Q 2016 Revenue EBIT Order Intake Order Backlog 6.0 NOK BILLION 0.3 NOK BILLION 3.5 NOK BILLION 32.0 NOK BILLION Reported Excl. special items 10 0.6 7 50 0.5 6 8 0.4 40 5 0.3 6 4 30 0.2 4 0.1 3 20 0 2 2 -0.1 10 1 -0.2 0 0 0 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 3Q
Slide 6: New Orders From Key Clients Globally
New Orders From Key Clients Globally Photo: Statoil Photo: Statoil Troll B modifications contract from Order for tie-in of Utgard field to Two subsea framework contracts Statoil Sleipner area with BP Two contract extensions for Two-year contract extension with 14 study awards for projects in mainten
Slide 7: Global Improvement Program Ahead of Schedule
Global Improvement Program Ahead of Schedule Targeting minimum 30 percent improvement in cost-efficiency across the business and building a culture of continuous improvement. #thejourney © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 7
Slide 8: Five Delivery Centers to Replace Existing Business Areas
Five Delivery Centers to Replace Existing Business Areas Customer Front End Products Projects Services Management Early client Project Life-of-field engagement execution services New set-up reflects our business workflow © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 8
Slide 9: Benefits of New Set-Up
Benefits of New Set-Up ■ Simplify how we operate, enabling leaner workflows ■ Generate greater synergies across company ■ Accelerate global improvement program ■ Facilitate strategy to grow services organization ■ Support pursuit of a more international business © 2016 Aker Solutions Third-Quarter R
Slide 10: Deeper Collaboration
Deeper Collaboration A new “all for one, one for all” alliance to fundamentally change how operators and suppliers can work together on field developments © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 10
Slide 11: Outlook
Outlook ■ Market uncertainty persists amid concern over capital, oil prices ■ Healthy tendering in main markets ■ Lower break-even costs may spur project sanctions in next 12 months, especially for brownfield projects ■ Biggest potential for growth seen outside home market Norway ■ Well placed to ca
Slide 12: Agenda | 3Q 2016
Agenda | 3Q 2016 Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 12
Slide 13: 3Q 2016 | Income Statement
3Q 2016 | Income Statement ■ Revenue for 3Q 2016 down 20% versus last year, reflecting lower order intake, project phasing and slowdown in services ■ Underlying 3Q 2016 EBITDA reached NOK 471 million, a margin of 7.9% versus 8.5% a year earlier (NOK million) 3Q 2016 3Q 2015 YTD 2016 YTD 2015 2015 Re
Slide 14: 3Q 2016 | Cashflow and Financial Position
3Q 2016 | Cashflow and Financial Position ■ 3Q 2016 cashflow from operations was a negative NOK 291 million, reflecting NCOA normalization ■ Expect NCOA to move over time towards more normalized level of around NOK 1.5 billion ■ Robust 3Q 2016 financial position with net debt of NOK 1.8 billion and
Slide 15: Subsea
Subsea ■ Good progress on major projects, ■ 3Q 2016 EBITDA1 margin at 9.2%, ■ 3Q 2016 order intake at NOK 0.6 according to plan down year-on-year billion, equivalent to 0.2x book-to-bill ■ 3Q 2016 revenue down 21% vs. ■ 3Q 2016 EBIT1 margin decreased to ■ End 3Q 2016 order backlog at NOK last year t
Slide 16: Field Design
Field Design ■ Impacted by continued activity ■ 3Q 2016 EBITDA1 margin of 7.5% driven ■ 3Q 2016 order intake at NOK 2.9 slowdown on the NCS by strong operational performance billion, equivalent to 1.2x book-to-bill ■ 3Q 2016 revenue down 16% vs. ■ 3Q 2016 EBIT1 margin of 6.3%, up ■ End 3Q 2016 order
Slide 17: Order Backlog Gives Good Visibility
Order Backlog1 Gives Good Visibility 3Q 2016 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion Potential additional revenue from existing agreements Order backlog Order intake Subsea backlog Field Design backlog 60 40.7 39.7 38.5 35.0 50 31.7 40 6.5 30 4.7 0.
Slide 18: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term offshore, deepwater outlook Capex and R&D ≈ 3% of revenue Near-term uncertainty on timing of awards Several major capex investment plans finished in Aim to at least maintain market share in main subsea, 2016 field design markets
Slide 19: Agenda | 3Q 2016
Agenda | 3Q 2016 Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2016 Aker Solutions Third-Quarter Results 2016 October 28, 2016 | Slide 19
Slide 20: Additional information
Additional information Additional information © 2016 Aker Solutions |
Slide 21: Special items
Special items NOK million Special items (EBITDA) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 YTD 2015 1Q 2016 2Q 2016 3Q 2016 Onerous leases1 52 58 40 114 265 - 4 39 Restructuring 0 2 41 373 416 15 19 0 Non-qualifying hedges 18 36 25 15 94 -4 -11 -11 Demerger and other costs2 4 4 4 11 22 3 15 -35 Special items
Slide 22: Income statement
Income statement NOK million Income statement consolidated 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 Revenue 8,274 9,155 32,971 8,500 8,048 7,484 7,864 31,896 6,463 6,969 5,987 EBITDA 615 786 2,675 591 547 521 182 1,841 508 563 477 Of which related to he
Slide 23: Balance sheet
Balance sheet NOK million Assets 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Property, plant and equipment 3,203 3,603 3,586 3,754 3,792 3,962 3,882 3,934 3,735 Intangible assets 5,810 6,143 6,238 6,388 6,518 6,539 6,403 6,306 6,305 Financial assets (non-current) 17 17 17
Slide 24: Cashflow
Cashflow NOK million Cashflow 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 EBITDA continuing operations 617 785 2,675 591 547 521 182 1,841 508 563 477 Change in cashflow from operating activities (968) 1,271 (30) (1,005) (627) 311 1,414 93 (836) (1,094) (7
Slide 25: Split per segment
Split per segment NOK million Revenue 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 Subsea 5,054 5,461 19,293 5,077 4,820 4,452 4,752 19,101 3,864 4,264 3,501 Field Design 3,210 3,688 13,710 3,467 3,293 2,990 3,170 12,920 2,650 2,725 2,519 Other 62 90 205 41
Slide 26: Split per segment
Split per segment NCOA 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Subsea 742 (332) 18 724 611 (472) (124) 640 1,134 Field Design 532 71 212 54 (238) (861) (538) (456) (533) Other (394) (427) (140) (122) (58) (275) (271) (283) (185) NCOA 880 (688) 90 656 315 (1,607) (933)
Slide 27: 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