Akastor ASA · OSL:AKAST

Akastor ASA — Q1 2018 Earnings Presentation

24 slides from Akastor ASA's earnings presentation, May 3, 2018

  1. Slide 1: First Quarter Results 2018

    First Quarter Results 2018 Webside endring Karl Erik Kjelstad (CEO) and Leif Borge (CFO) Fornebu | May 3, 2018 Q2 & 1H Results 2016 Kristian Røkke and Leif H. Borge © 2018 Akastor Oslo | July 14, 2016 First Quarter Results 2017 3 May 2017 Slide 1

  2. Slide 2: Highlights

    Highlights EBITDA NOK 140 million  EBITDA of NOK 140 million MHWirth 69  Net bank debt of NOK 0.8 billion, cash and undrawn credit facilities of NOK 1.6 billion AKOFS 86  Order intake of NOK 1.0 billion Other  MHWirth awarded drilling package with Keppel FELS in -14 Holdings April, contract valu

  3. Slide 3: Portfolio Highlights

    Portfolio Highlights  Signed contract for drilling package with Keppel FELS, end client Awilco Drilling  Drilling market recovering slowly, but service activity remains stable  Quarterly revenues up 17% year on year, EBITDA margin 9%  Good start of operations for Aker Wayfarer, commenced 5 + 5 y

  4. Slide 4: M&A activity - capitalizing on and strengthening existing portfolio

    M&A activity - capitalizing on and strengthening existing portfolio  Subscribed in Awilco Drilling private placement at a share price of NOK 29 USD 10 million  Net proceeds will be used to finance new semisubmersible drilling rig for harsh environment use investment to be built by Keppel FELS Form

  5. Slide 5: Condensed Consolidated Income Statement

    Condensed Consolidated Income Statement First Quarter Full Year NOK million 2018 2017 2017 Operating revenues and other income 1 135 943 4 348 Operating expenses (995) (890) (4 055) Operating profit before depreciation, amortization and impairment (EBITDA) 140 53 293 Depreciation and amortization (1

  6. Slide 6: The Akastor Portfolio

    The Akastor Portfolio NET CAPITAL EMPLOYED OF NOK 7.2 BILLION NOK million Investments 625 Other 743 NCOA 925 NIBD MHWirth 2 209 2 499 Intangible assets 2 085 AKOFS 3 954 Equity1) Fixed 4 987 assets 4 068 4 357 Other -507 NET CAPITAL EMPLOYED OF NOK 7.2 billion Net Capital Funding Market Cap as of Em

  7. Slide 7: Capital Structure

    Capital Structure  Net debt of NOK 2 210 million as of FUNDING first quarter SIZE MATURITY MARGIN − Gross Debt of NOK 2 378 million, of which REVOLVING USD 147 July 1.65%–4.5% million 2019 financial lease NOK 1 381 million and bank REVOLVING NOK 1 005 July 1.65%–4.5% debt NOK 997 million million 20

  8. Slide 8: MHWirth

    MHWirth  Revenues of NOK 731 million in the quarter, up 17% y-o-y BUSINESS SPLIT YTD BASED ON REVENUE Projects and  EBITDA of NOK 69 million in the quarter; Products DLS/service 54 % − EBITDA margin of 9%, same as last year 46 % INSTALLED BASE (84 UNITS)  Order intake of NOK 724 million JU by typ

  9. Slide 9: AKOFS Offshore

    AKOFS Offshore  Aker Wayfarer with good start of operations, commenced Revenue and EBITDA 5+5 year contract with Petrobras on 1st January NOK million 262 213  Revenues of NOK 262 million, up 41% y-o-y 186 187 193  EBITDA of NOK 86 million, vs NOK 33 million Q1 last year 80 86 62  Skandi Santos s

  10. Slide 10: Other Holdings

    Other Holdings  Step Oiltools – Revenue of NOK 53 million and EBITDA of NOK 2 million in the quarter  Cool Sorption – Revenue of NOK 17 million and EBITDA of NOK 0 million in the quarter  First Geo – Revenue of NOK 32 million and EBITDA of NOK 3 million in the quarter Revenue and EBITDA NOK milli

  11. Slide 11: Akastor as an investment company

    Akastor as an investment company Key Focus  Continue to focus on developing our portfolio companies  M&A: Capitalize on portfolio companies  Optimize capital structure © 2018 Akastor First Quarter Results 2018 3 May 2018 Slide 11

  12. Slide 12: Additional information

    Additional information © 2018 Akastor First Quarter Results 2018 3 May 2018 Slide 12

  13. Slide 13: Condensed Consolidated Statement of Financial Position

    Condensed Consolidated Statement of Financial Position March 31 December 31 Significant updates: NOK million 2018 2017 Deferred tax asset 697 661 • On April 9, 2018, the South Korea Branch of MHWirth AS received an Intangible assets 1 387 1 435 official decision letter that the VAT Property, plant a

  14. Slide 14: Condensed Consolidated Statement of Cash flows

    Condensed Consolidated Statement of Cash flows First Quarter Full Year NOK million 2018 2017 2017 Profit (loss) for the period (19) 189 (58) (Profit) loss for the period – discontinued operations (21) (378) (1 049) Depreciation, amortization and impairment – continuing operations 125 150 730 Other a

  15. Slide 15: Net Financial Items

    Net Financial Items First Quarter Full Year NOK million 2018 2017 2017 Net interest expenses on financial liabilities measured at amortized costs (17) (27) (106) Financial charges under finance leases (56) (73) (265) Profit (loss) on foreign currency forward contracts (1) - (111) Profit (loss) from

  16. Slide 16: Alternative Performance Measures

    Alternative Performance Measures Akastor discloses alternative performance measures  EBITDA - earnings before interest, tax, depreciation and amortization, corresponding to "Operating profit before as a supplement to the consolidated financial depreciation, amortization and impairment" in the state

  17. Slide 17: Alternative Performance Measures

    Alternative Performance Measures March 31 December 31 NOK million 2018 2017  Net current operating assets (NCOA) - a measure of working capital. It is calculated by current operating assets minus Current operating assets 2 678 2 946 current operating liabilities, excluding financial assets or Less:

  18. Slide 18: Alternative Performance Measures

    Alternative Performance Measures  Gross debt - sum of current and non-current borrowing March 31 December 31 NOK million 2018 2017  Net debt - gross debt minus cash and cash equivalents Non-current borrowings  Net bank debt - Net debt minus liabilities related to financial lease 1 889 2 133 Curre

  19. Slide 19: Key Figures

    Key Figures AKASTOR GROUP (continuing operations) NOK million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 2017 Operating revenue and other income 943 873 1 433 1 098 1 135 4 348 EBITDA 53 18 54 167 140 293 EBIT (96) (159) (194) 11 15 (438) CAPEX and R&D capitalization 15 15 30 35 17 95 NCOA 1 268 1 228 1 162 1 04

  20. Slide 20: Split per Company - MHWirth

    Split per Company MHWIRTH NOK million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 2017 Operating revenue and other income 627 550 1 113 739 731 3 030 EBITDA 55 - (21) 83 69 118 EBIT 9 (71) (160) 33 37 (189) CAPEX and R&D capitalization 3 8 16 19 4 46 NCOA 1 250 1 119 1 086 995 782 995 Net capital employed 3 338 3

  21. Slide 21: Split per Company - AKOFS Offshore

    Split per Company AKOFS OFFSHORE NOK million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 2017 Operating revenue and other income 186 187 193 213 262 778 EBITDA 33 37 62 80 86 213 EBIT (48) (46) (25) (2) 7 (121) CAPEX and R&D capitalization 12 7 6 15 11 40 NCOA 192 221 225 186 238 186 Net capital employed 4 372 4

  22. Slide 22: Split per Company - Other Holdings

    Split per Company OTHER HOLDINGS NOK million Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 2017 Operating revenue and other income 143 151 142 159 148 596 EBITDA (35) (19) 13 4 (14) (38) EBIT (58) (41) (8) (20) (29) (127) CAPEX and R&D capitalization - - 7 1 3 9 NCOA (175) (112) (149) (138) (95) (138) Net capital e

  23. Slide 23: © 2018 Akastor First Quarter Results 2018 3 May 2018

    © 2018 Akastor First Quarter Results 2018 3 May 2018 Slide 23

  24. Slide 24: Copyright and disclaimer

    Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u

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