Aker Solutions Asa · OSL:AKSO

Aker Solutions Asa — Q2 2023 Earnings Presentation

33 slides from Aker Solutions Asa's earnings presentation, Jul 13, 2023

  1. Slide 1: 2Q 2023

    Photo: Aker BP 2Q 2023 Fornebu, July 13, 2023 Kjetel Digre, CEO Idar Eikrem, CFO 2023 © Aker Solutions

  2. Slide 2: 2Q 2023 | Continued Solid Performance

    2Q 2023 | Continued Solid Performance Revenue Excluding special items EBITDA Excluding special items Financials 14.2 NOK BILLION 1.2 NOK BILLION ■ Solid increase in key financials from same period last year ■ Large secured backlog of projects creating good transparency 15 1.2 ■ Strong financial posi

  3. Slide 3: 2Q 2023 | Operational Highlights

    2Q 2023 | Operational Highlights Aker BP portfolio Life Cycle portfolio Renewables portfolio FPSO portfolio Subsea portfolio Engineering Consultancy 2023 © Aker Solutions Second-Quarter Results 2023 July 13, 2023 Slide 3

  4. Slide 4: 2Q 2023 | New Orders

    2Q 2023 | New Orders Renewables and Field Development  Growth in existing and newly-awarded contracts NOK 6.7 billion Life Cycle (former EMM)  Growth in existing contracts and frame agreements NOK 0.9 billion Subsea  Subsea production system for TotalEnergies’ Moho development in the Republic of

  5. Slide 5: Tender Value at NOK 100 Billion

    Tender Value at NOK 100 Billion Tender Value Development 60 NOK billion NOK 115 BILLION 120 105 100 90 81 90 80 80 78 79 60 30 0 2Q’21 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 6 NOK BILLION 2 NOK BILLION 12 NOK BILLION 20 NOK BILLION 2023 © Aker Solutions Second-Quarter Results 2023 July 13,

  6. Slide 6: Outlook

    Outlook ■ Well positioned for long-term growth and shareholder value creation ■ Solid financial position ■ De-leveraged balance sheet with net cash position of NOK 7.7 bn ■ Subsea JV to unlock significant shareholder value ■ High secured order backlog ■ Majority to be executed in well proven allianc

  7. Slide 7: Financial Performance

    Financial Performance Idar Eikrem, CFO 2023 © Aker Solutions

  8. Slide 8: 2Q 2023 | Solid Performance

    2Q 2023 | Solid Performance NOK million 2Q 2023 2Q 2022 1H 2023 1H 2022 2022 Revenue 14,246 10,635 25,741 18,926 41,417 Financials continue on-track with Revenue ex. special items 14,192 10,581 25,618 18,882 41,378 targets, with a strong financial position EBITDA 1,099 653 1,968 1,251 2,934 EBITDA m

  9. Slide 9: 2Q 2023 | Net Cash Position of NOK 7.7 Billion

    2Q 2023 | Net Cash Position of NOK 7.7 Billion 1 Net cash position1 of NOK 7.7 billion Debt Maturity Profile1 NOK billion Available liquidity of NOK 11.1 billion 8 Undrawn revolving credit facility Drawn debt ■ Cash NOK 8.1 billion and RCF NOK 3.0 billion Cash flow from operations at NOK 1.8 billion

  10. Slide 10: 2Q 2023 | Cash Generation

    2Q 2023 | Cash Generation Change in Cash and Cash Equivalents NOK billion Solid cash generation in quarter +976 ■ Cash flow from operations of NOK 1.8 billion in 206 the quarter 833 434 140 ■ Driven by solid operational performance and 253 31 continued improvement in working capital 8,078 489 249 ■

  11. Slide 11: Renewables and Field Development

    Renewables and Field Development Revenue EBITDA and Margin1 Financials and Highlights 5.4 NOK BILLION 208 NOK MILLION ■ Revenue of NOK 5.4 billion in quarter 6 250 14% ■ 36% increase compared to same period last year 5 12% 200 10% 4 150 8% ■ EBITDA1 of NOK 208 million (3.9% margin) in quarter 3 100

  12. Slide 12: Life Cycle

    Life Cycle Revenue EBITDA and Margin1 Financials and Highlights 3.3 NOK BILLION 164 NOK MILLION ■ Revenue of NOK 3.3 billion in quarter 4 250 16% ■ 6% increase from same period last year 14% 200 3 12% ■ EBITDA1 of NOK 164 million (4.9% margin) in quarter 150 10% 2 6% 8% ■ Continued solid performance

  13. Slide 13: Subsea

    Subsea Revenue EBITDA and Margin1 Financials and Highlights 5.3 NOK BILLION 883 NOK MILLION ■ Revenue of NOK 5.3 billion in the quarter 6 1,000 20% 17% 18% 17% ■ Delivered revenue growth of 58% compared to same period last year 16% 15% 5 800 15% 4 600 ■ EBITDA1 of NOK 883 million (16.6% margin) for

  14. Slide 14: High Order Backlog – Solid visibility for activity forward

    High Order Backlog – Solid visibility for activity forward Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 % 39.0 Share of Order Backlog 40 35 10.5 2Q 2021 2Q 2022 2Q 2023 30 27.9 25 21.7 10.0 20 2.9 20.7 15 30% 32% 15% 12.4 13.4 9.1 10 5 4.6 5.2 7.6 5.4 3.2 0 2H 2023 2

  15. Slide 15: Summary Outlook

    Summary Outlook ▪ On track with strategy and targets ▪ 2023 overall revenues is expected to be up by around 30% from 2022, based on secured backlog ▪ Increased revenues and margins in and market activity the quarter compared to last year, (incl. Subsea ‘as-is’) despite operational and commercial cha

  16. Slide 16: Q&A

    Be AkerSolutions We solve global energy challenges Ca f for future generations 7

  17. Slide 17: Additional Information

    Additional Information 2023 © Aker Solutions

  18. Slide 18: Well Positioned for Shareholder Value Creation

    Well Positioned for Shareholder Value Creation Aker Solutions post-close of JV, ambitions ▪ NOK 73 billion of backlog at 2Q-2023, excl. Subsea, majority of which are lower-risk NCS projects with upside potential through alliance models ▪ EBITDA margin, excl. Subsea, to increase from current levels ▪

  19. Slide 19: JV Transaction | Unlocking Significant Shareholder Value

    JV Transaction | Unlocking Significant Shareholder Value Final ownership structure Receiving USD 700 million Retaining 20% ownership as consideration for 20% ownership and cash generation until close USD 306.5 million Cash 20% JV ownership A leading subsea company2 Will contribute to Aker Solutions’

  20. Slide 20: Ordinary Dividend Policy of 30-50% of Annual Net Profit

    Ordinary Dividend Policy of 30-50% of Annual Net Profit Priorities Maintain sufficient Balanced capital allocation strategy to protect Financial robustness and drive growth in shareholder value Prudent management of the balance sheet ■ Financial robustness to handle business cycles ■ Maintain flexib

  21. Slide 21: Timing of selected large projects in the portfolio, by Segment

    Timing of selected large projects in the portfolio, by Segment Renewables and Field Development Subsea Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg Equinor 2017 2024 Jansz, subsea gas compression Chevron 2021 2025 Hugin A Aker BP 20

  22. Slide 22: Renewables and Transitional Energy Solutions

    Renewables and Transitional Energy Solutions NOK Million Revenue 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Total revenue (excl. special items) 7,018 7,311 8,666 29,464 8,301 10,581 10,041 12,455 41,378 11,427 14,192 Renewables and Transitional Energy Sol

  23. Slide 23: Special Items

    Special Items NOK million, (Gain) / Loss Special items (EBITDA) 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Restructuring 3 19 0 25 1 0 (0) 1 3 2 0 Non-qualifying hedges (2) (1) 3 (7) (18) 32 (4) 2 12 5 10 Other special items 3 1 6 12 2 6 17 48 73 30 58 To

  24. Slide 24: Income Statement

    Income Statement NOK million Income statement consolidated 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Revenue 7,020 7,314 8,668 29,473 8,291 10,635 10,035 12,456 41,417 11,495 14,246 Operating expenses (6,632) (6,873) (8,085) (27,631) (7,693) (9,982) (9,2

  25. Slide 25: Cash Flow

    Cash Flow NOK million Cash flow 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 EBITDA 388 441 583 1,842 598 653 736 947 2,934 868 1,099 Change in cash flow from operating activities (129) 135 898 957 986 (681) 33 1,245 1,584 832 695 Net cash flow from operati

  26. Slide 26: Balance Sheet – Assets

    Balance Sheet – Assets NOK million Assets 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Property, plant and equipment 3,397 3,262 3,231 3,269 3,424 3,533 3,596 3,762 4,246 Intangible assets including Goodwill 5,768 5,743 5,724 5,808 6,101 6,064 5,949 5,958 5,933 Right-of-us

  27. Slide 27: Balance Sheet – Liabilities and Equity

    Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Total equity attributable to the parent 7,903 7,870 7,833 8,011 8,727 9,129 9,244 9,940 10,506 Non-controlling interests 37 35 28 39 64 41 (4) (3) (3) Tot

  28. Slide 28: Split Per Segment

    Split Per Segment NOK million Revenue 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Renewables and Field Development 2,655 2,499 2,721 10,625 2,795 3,958 3,551 4,553 14,857 4,128 5,369 Life Cycle 2,360 2,406 2,568 9,197 2,490 3,160 2,938 3,576 12,164 2,933 3

  29. Slide 29: Split Per Segment

    Split Per Segment NOK million NCOA 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 NCOA (398) (666) (1,784) (2,791) (2,307) (2,347) (4,032) (4,920) (5,753) Order intake 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Renewables and Fiel

  30. Slide 30: Split Per Segment – Excluding Special Items

    Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 2Q 2021 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 Renewables and Field Development 95 89 108 540 102 76 124 185 488 171 208 Life Cycle 126 126 92 420 140 189 146 188 663 161 164

  31. Slide 31: Order Backlog by Market

    Order Backlog by Market NOK billion, % Order Backlog by Market 2Q 2022 2Q 2023 Norway 58 % 76 % Europe 7% 8% Asia Pacific 17 % 5% North America 11 % 5% South America 4% 4% Africa 2% 2% Total 100 % 100 % Total backlog (NOK billion) 52.7 97.7 2023 © Aker Solutions Second-Quarter Results 2023 July 13,

  32. Slide 32: 2023 © Aker Solutions

    2023 © Aker Solutions

  33. Slide 33: 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

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