Slide 1: 2Q 2015
2Q 2015 Fornebu, July 15, 2015 Luis Araujo and Svein Stoknes
Slide 2: Forward-Looking Statements and Copyright
Forward-Looking Statements and Copyright This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations,
Slide 3: Agenda | 2Q 2015
Agenda | 2Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 3 July 15, 2015 Second-Quarter Results 2015 Preferred partner
Slide 4: Key Developments
Key Developments ■ Revenue steady, helped by key projects from Africa to Norway and Brazil ■ Profit margins narrow on Norway slowdown ■ Workforce adjustments in MMO, subsea services in Norway ■ Major projects progress as planned ■ Solid order backlog of NOK 44 billion ■ MMO wins contract from ExxonM
Slide 5: Key Figures | 2Q 2015
Key Figures | 2Q 2015 Revenue and EBIT Order intake and backlog NOK billion NOK billion Revenue EBIT Intake Backlog 10 0.6 25 60 8 20 8.0 0.4 40 44.0 6 15 0.4 4 10 0.2 20 2 5 3.4 0 0.0 0 0 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2014 2015 2014 2015 2014 2015 2014 2015 © 2015 Aker
Slide 6: Improvement Agenda | Collaboration is Key
Improvement Agenda | Collaboration is Key ■ Collaboration with clients to achieve operational, cost-savings improvements ■ Collaboration with Baker Hughes on early-phase studies ■ Collaboration with Subsea 7 on FEED contract for Ophir Energy ■ Steady progress on cost-savings programs in all areas ■
Slide 7: Outlook
Outlook ■ Market uncertainty persists amid concern over capital constraints ■ Tougher commercial environment and increasing price pressure ■ Steady tendering in main markets, though seeing projects postponed ■ Norway market sluggish next 1-2 years ■ Healthy order backlog and growing international pr
Slide 8: Agenda | 2Q 2015
Agenda | 2Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 8 July 15, 2015 Second-Quarter Results 2015 Preferred partner
Slide 9: 2Q 2015 | Consolidated Income Statement
2Q 2015 | Consolidated Income Statement ■ Revenue for 2Q 2015 almost unchanged versus 2Q last year, reflecting good project progress ■ 2Q 2015 EBITDA (excluding one-off items) reached NOK 609 million, equivalent to a margin of 7.6% (NOK million) 2Q 15 2Q 14 1H 2015 1H 2014 2014 Operating revenue and
Slide 10: 2Q 2015 | Financial Position
2Q 2015 | Financial Position ■ Net interest-bearing debt was NOK 1.8 billion, gross debt at NOK 3.8 billion ■ Financial leverage was 0.7x and gearing 31%, remaining well below policy of 1x net interest- bearing debt / EBITDA and less than 50% net interest-bearing debt / equity ■ Robust total liquidi
Slide 11: 2Q 2015 | Consolidated Cashflow, Capex and NCOA
2Q 2015 | Consolidated Cashflow, Capex and NCOA ■ 2Q 2015 cashflow from operations negative NOK 80 million ■ Working capital (NCOA) at end of 2Q reached NOK 656 million, showing expected increase versus 2014 on major project progress ■ Cashflow from investing activities of NOK 419 million, with capi
Slide 12: Subsea
Subsea ■ 2Q 2015 revenue up 3% vs last year to NOK 4.8 ■ Order intake in 2Q 2015 down versus 2Q billion 2014 to NOK 1.8 billion, 0.4x book-to-bill ■ Main driver was progress on major projects in ■ End 2Q 2015 order backlog was down year- Angola, Congo and Brazil on-year to NOK 27.5 billion ■ 2Q 2015
Slide 13: MMO
MMO ■ 2Q 2015 Revenue down 7.7% vs. last year to ■ Order intake driven by markets outside Norway NOK 2.4 billion and was down year-on-year to NOK 1.3 billion, ■ 2Q 2015 EBITDA margin of 2.8%, up versus 2Q 0.5x book-to-bill 2014 and 1Q 2015 ■ End 2Q 2015 order backlog decreased 13.2% ■ Continued acti
Slide 14: Engineering
Engineering ■ Revenue growth of 9.3% vs. last year, reaching ■ Order intake for 2Q 2015 decreased to NOK 0.4 NOK 1 billion in 2Q 2015 billion, equivalent to 0.4x book-to-bill ■ Main driver was good progress on key projects ■ End 2Q 2015 order backlog at NOK 4.8 billion in Norway, UK and Asia was 135
Slide 15: Good Visibility From Solid Order Backlog
Good Visibility From Solid Order Backlog1 2Q 2015 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion 53.9 49.0 48.3 48.3 60 44.0 20 50 15 40 21.4 30 10 16.9 20 9.0 12.8 6.2 5 3.6 3.4 8.3 6.1 10 0 0 2015 2016 2017 2018→ 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 Potential a
Slide 16: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term offshore, deepwater Maintenance capex / R&D ≈ 3% of revenue outlook Current major capex expansion plans to be Near-term uncertainty on timing of awards finished in 2015 Aim to at least maintain market share in Working capital: l
Slide 17: Agenda | 2Q 2015
Agenda | 2Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 17 July 15, 2015 Second-Quarter Results 2015 Preferred partner
Slide 18: Additional information
Additional information 2Q 2015
Slide 19: Consolidated income statement
Consolidated income statement NOK million Income statement consolidated 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 Operating revenue and other income 7,317 7,435 6,758 7,548 29,058 7,482 8,060 8,274 9,155 32,971 8,500 8,048 EBITDA 469 431 519 661
Slide 20: Consolidated assets & debt and equity
Consolidated assets & debt and equity NOK million Assets 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Property, plant and equipment 2,539 2,691 2,814 3,072 3,067 3,180 3,203 3,603 3,586 3,754 Intangible assets 5,057 5,253 5,131 5,524 5,585 5,731 5,810 6,143 6,238 6
Slide 21: Consolidated cashflow
Consolidated cashflow NOK million Cashflow 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2013 4Q 2014 FY 2014 1Q 2015 2Q 2015 EBITDA continuing operations 488 439 567 668 2,162 623 587 617 785 2,675 591 547 Change in cashflow from operating activities (2,066) 1,117 (11) 1,457 497 (1,510
Slide 22: Split per segment
Split per segment NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 Subsea 3,784 4,103 3,653 4,164 15,703 4,105 4,672 5,054 5,461 19,293 5,077 4,820 Field Design 2,999 3,183 2,935 3,385 12,502 3,404 3,408 3,210 3,688 13,710 3,467 3,2
Slide 23: Split per segment
Split per segment NCOA 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Subsea 2,543 1,157 1,264 311 1,322 327 742 (332) 18 724 Field Design 117 352 268 (304) 275 250 532 71 212 54 Other 207 171 210 91 (105) (241) (394) (427) (140) (122) NCOA 2,867 1,681 1,742 98 1,492
Slide 24: Split per business area
Split per business area NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 Subsea 3,784 4,103 3,653 4,164 15,703 4,105 4,672 5,054 5,461 19,293 5,077 4,820 Maintenance, Modifications and Operations 2,267 2,509 2,296 2,599 9,671 2,583
Slide 25: Split per business area
Split per business area Order intake 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 2Q 2015 Subsea 18,855 3,800 3,367 2,668 28,691 4,423 18,463 1,791 2,630 27,306 1,998 1,782 Maintenance, Modifications and Operations 2,942 2,157 1,219 5,761 12,079 1,173 2,251