Slide 1: 4Q16
4Q16 Fornebu, February 9, 2017 Luis Araujo and Svein Stoknes © 2017 Aker Solutions
Slide 2: Agenda
Agenda Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2017 Aker Solutions Fourth-Quarter and Preliminary Annual Results 2016 February 9, 2017 Slide 2
Slide 3: Key Developments
Key Developments Solid financial position Major projects with liquidity buffer of progress as planned NOK 7.5 billion Acquisition of 70 percent Global improvement Robust order backlog of of Brazilian C.S.E. program ahead of about NOK 31 billion Mecânica e Steady underlying schedule New
Slide 4: Key Figures | 2016
Key Figures | 2016 Revenue EBIT Order Intake Order Backlog 25.6 NOK BILLION 0.7 NOK BILLION 17.0 NOK BILLION 31.2 NOK BILLION 35 3 50 50 30 2.5 40 40 25 2 30 30 20 1.5 15 20 20 1 10 10 10 5 0.5 0 0 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 201
Slide 5: Key Figures | 4Q 2016
Key Figures | 4Q 2016 Revenue EBIT Order Intake Order Backlog 6.1 NOK BILLION -0.2 NOK BILLION 4.1 NOK BILLION 31.2 NOK BILLION Reported Excl. special items 10 0.6 7 50 0.5 6 8 0.4 40 5 0.3 6 30 0.2 4 0.1 3 4 20 0 2 2 -0.1 10 1 -0.2 0 -0.3 0 0 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 4Q 15 1Q 16 2Q 16 3Q 16 4Q
Slide 6: New Orders
New Orders Photo: Statoil Two contracts from DEA Norge Contract to build pipeline facilities, Contract of about NOK 1 billion for the Dvalin natural gas modifications and tie-ins for the for work in the subsea area for an development Mongstad terminal undisclosed customer Two framework agreements wi
Slide 7: #thejourney
#thejourney LEAN TRAINING TRANBY RECORD 74% 50 Achieved two-thirds of 30% cost-efficiency target of employees completed subsea trees Lean White Belt training in 12 months TARGET REACHED MAINTENANCE AND LEAN AWARD MODIFICATIONS Engineering and procurement services costs down 30% 40% Egersund fabricat
Slide 8: Outlook
Outlook ■ Market outlook for oil services remains challenging ■ Some signs of brownfield recovery, as oil prices seen stabilizing and industry cost cuts having an effect ■ Lower project break-even costs likely to spur more project sanctions this year ■ Healthy tendering in main markets ■ Well placed
Slide 9: Agenda
Agenda Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2017 Aker Solutions Fourth-Quarter and Preliminary Annual Results 2016 February 9, 2017 Slide 9
Slide 10: 4Q 2016 | Income Statement
4Q 2016 | Income Statement ■ Revenue for 4Q 2016 down 22% versus last year, reflecting lower order intake, project phasing and slowdown in services ■ Underlying 4Q 2016 EBITDA reached NOK 539 million, a margin of 8.8% versus 8.9% a year earlier (NOK million) 4Q 2016 4Q 2015 2016 2015 Revenue 6,138 7
Slide 11: 4Q 2016 | Cashflow and Financial Position
4Q 2016 | Cashflow and Financial Position ■ 4Q 2016 cashflow from operations was NOK 1.5 billion, reflecting favorable NCOA in the quarter ■ Expect NCOA to move over time towards more normalized level of around NOK 1 to 1.5 billion ■ Robust 4Q 2016 financial position with net interest bearing items
Slide 12: Subsea
Subsea ■ Good progress on major projects, ■ 4Q 2016 EBITDA1 margin at 9.7%, ■ 4Q 2016 order intake at NOK 2.6 according to plan down year-on-year billion, equivalent to 0.8x book-to-bill ■ 4Q 2016 revenue down 29% vs. ■ 4Q 2016 EBIT1 margin decreased to ■ End 4Q 2016 order backlog at NOK last year t
Slide 13: Field Design
Field Design ■ Impacted by activity slowdown in ■ 4Q 2016 EBITDA1 margin of 8.2% ■ 4Q 2016 order intake at NOK 1.5 the UK and Asia Pacific driven by strong operational performance billion, equivalent to 0.5x book-to-bill ■ 4Q 2016 revenue down 12% vs. ■ 4Q 2016 EBIT1 margin of 7.2%, up ■ End 4Q 2016
Slide 14: Order Backlog Gives Good Visibility
Order Backlog1 Gives Good Visibility 4Q 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 39.7 50 38.5 35.0 31.7 31.2 40 7.9 30 6.1 20
Slide 15: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term offshore, deepwater outlook Capex and R&D ≈ 2-3% 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 2016 subsea, field design markets
Slide 16: Agenda
Agenda Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo Svein Stoknes Financials Svein Stoknes Chief Financial Officer © 2017 Aker Solutions Fourth-Quarter and Preliminary Annual Results 2016 February 9, 2017 Slide 16
Slide 17: Additional information
Additional information © 2017 Aker Solutions
Slide 18: 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 4Q 2016 YTD 2016 Onerous leases1 52 58 40 114 265 - 4 39 39 82 Restructuring2 0 2 41 373 416 15 19 0 130 163 Non-qualifying hedges 18 36 25 15 94 -4 -11 -11 -18 -44 Other costs3 4 4 4 11
Slide 19: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Revenue 9,155 32,971 8,500 8,048 7,484 7,864 31,896 6,463 6,969 5,987 6,138 25,557 EBITDA 786 2,675 591 547 521 182 1,841 508 563 477 380 1,929 O
Slide 20: Balance Sheet
Balance Sheet NOK million Assets 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Property, plant and equipment 3,603 3,586 3,754 3,792 3,962 3,882 3,934 3,735 3,808 Intangible assets 6,143 6,238 6,388 6,518 6,539 6,403 6,306 6,305 6,298 Financial assets (non-current) 17 17 17
Slide 21: Cashflow
Cashflow NOK million Cashflow 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 EBITDA continuing operations 785 2,675 591 547 521 182 1,841 508 563 477 380 1,929 Change in cashflow from operating activities 1,271 (30) (1,005) (627) 311 1,414 93 (836) (1
Slide 22: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2014 FY 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Subsea 5,461 19,293 5,077 4,820 4,452 4,752 19,101 3,864 4,264 3,501 3,368 14,996 Field Design 3,688 13,710 3,467 3,293 2,990 3,170 12,920 2,650 2,725 2,519 2,777 10,
Slide 23: Split Per Segment
Split Per Segment NCOA 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Subsea (332) 18 724 611 (472) (124) 640 1,134 561 Field Design 71 212 54 (238) (861) (538) (456) (533) (937) Other (427) (140) (122) (58) (275) (271) (283) (185) (528) NCOA (688) 90 656 315 (1,607) (933) (
Slide 24: Organizational Set-Up Reflects Our Business Workflow
Organizational Set-Up Reflects Our Business Workflow Customer Front End Products Projects Services Management Early client Project Life-of-field engagement execution services © 2017 Aker Solutions Fourth-Quarter and Preliminary Annual Results 2016 February 9, 2017 Slide 24
Slide 25: New Reporting Segments
New Reporting Segments Projects Services Other Subsea projects Subsea life-cycle services (SLS) Corporate Engineering projects MMO production asset services2 Eliminations MMO projects1 1 Includes modifications, hook-up and fabrication 2 Includes MMO Operations & Maintenance, Asset Integrity Manageme
Slide 26: Aker Solutions – Proforma
Aker Solutions – Proforma NOK million 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Aker Solutions Operating revenue and other income 8,500 8,048 7,484 7,864 31,896 6,463 6,969 5,987 6,138 25,557 EBITDA 591 547 521 182 1,841 508 563 477 380 1,929 EBITDA margin 7.0 %
Slide 27: Split Per Segment, Projects – Proforma
Split Per Segment, Projects – Proforma NOK million 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Operating revenue and other income 6,913 6,454 5,988 6,335 25,690 5,051 5,474 5,003 5,100 20,627 EBITDA 456 406 322 175 1,358 378 409 400 360 1,547 EBITDA margin 6.6 % 6
Slide 28: Split Per Segment, Services – Proforma
Split Per Segment, Services – Proforma NOK million 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Operating revenue and other income 1,620 1,654 1,456 1,551 6,281 1,476 1,449 1,019 1,057 5,001 EBITDA 234 271 281 176 962 151 173 115 161 601 EBITDA margin 14.5 % 16.4 %
Slide 29: Split Per Segment, Other – Proforma
Split Per Segment, Other – Proforma NOK million 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 Operating revenue and other income 41 50 104 79 273 25 48 -9 25 88 EBITDA -99 -130 -82 -169 -480 -21 -18 -38 -141 -219 EBITDA ex. special items -24 -32 -13 -29 -99 -22 -23
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
Slide 31: © 2017 Aker Solutions
© 2017 Aker Solutions