Slide 1: 1Q 2021
1Q 2021 Fornebu, May 5, 2021 Kjetel Digre and Idar Eikrem 2021 © Aker Solutions
Slide 2: 1Q 2021 | Transition Journey On Track
1Q 2021 | Transition Journey On Track Revenue Excluding special items EBITDA Excluding special items Developments 6.5 NOK BILLION 427 NOK MILLION ■ Revenue and EBITDA on track versus plans 12 600 ■ Successfully meeting key milestones 10 500 8 400 ■ COVID-19 restrictions continued to affect operation
Slide 3: 1Q 2021 | New Awards – 1.5x Book-to-Bill
1Q 2021 | New Awards – 1.5x Book-to-Bill Renewables and Electrification, Subsea Field Development Maintenance and Modifications NOK 2.6 billion NOK 4.1 billion Photo: Equinor NOK 2.8 billion ■ FEED for concrete foundations to ■ Topside modifications work for ■ Subsea production system for Empire Win
Slide 4: Financial Performance
Financial Performance Idar Eikrem, CFO 2021 © Aker Solutions
Slide 5: 1Q 2021 | Transition Journey On Track
1Q 2021 | Transition Journey On Track NOK million 1Q 2021 1Q 2020 2020 Earnings improved, cash flow increased, and order intake Revenue Revenue ex. special items 6,470 6,469 8,601 8,592 29,396 28,548 increased in the first quarter 2021 EBITDA 429 (3) 1,539 EBITDA margin 6.6% (0.0%) 5.2% ■ Revenue1 o
Slide 6: Solid Financial Position
Solid Financial Position ■ Working capital1 at minus NOK 118 million Debt Maturity Profile2 NOK billion ■ Cashflow from operations at NOK 482 million 6 Undrawn revolving credit facility Drawn debt 5.0 ■ Cash inflow from investing activities at NOK 168 million 4 ■ Net cash position2 of NOK 794 millio
Slide 7: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 ■ Revenue of NOK 2.8 billion 2.8 NOK BILLION 248 NOK MILLION ■ Recently awarded projects in early phases of execution, incl. Hywind Tampen, Norcem CCUS and Northern Lights 5 400 12% 9% 9% 9% 4 300 8% 9% ■ EBITDA1 of NOK 248 million (9.0% ma
Slide 8: Electrification, Maintenance and Modifications
Electrification, Maintenance and Modifications Revenue EBITDA and Margin1 ■ Revenue of NOK 1.9 billion 1.9 NOK BILLION 76 NOK MILLION ■ Down year-on-year driven by finalization of large modification and hook-up projects during 2020 5 200 10% 4 100 5% 4% 4% 4% 5% ■ EBITDA1 of NOK 76 million (4.1% mar
Slide 9: Subsea
Subsea Revenue EBITDA and Margin1 ■ Revenue of NOK 1.9 billion 1.9 NOK BILLION 172 NOK MILLION ■ Currently in early phases of execution on recently awarded work 5 500 15% 4 400 12% 12% 12% ■ EBITDA1 of NOK 172 million (9.0% margin) 9% 3 300 7% 9% ■ Strong order intake of NOK 2.8 billion (1.5x book-t
Slide 10: Healthy Order Backlog and Visibility
Healthy Order Backlog and Visibility Order Backlog – by Execution Year NOK billion Order Backlog and Intake – Development NOK billion Order backlog Order intake 20 Subsea 50 Renewables and Field Development (X times book-to-bill) 16.3 EMM1 40 15 13.7 5.0 4.1 30 10 5.2 40.5 4.1 20 38.1 38.0 5.7 33.3
Slide 11: Summary and Outlook
Summary and Outlook Summary ■ Covid-19 restrictions continued through 1Q 2021, mainly impacting mobilization of personnel in Norway, however outlook moving forward has improved ■ Healthy order backlog of NOK 40.5 billion ■ NOK 78 billion of ongoing tenders, of which about 30 percent relates to Energ
Slide 12: Market and Strategic Development
Market and Strategic Development Kjetel Digre, CEO 2021 © Aker Solutions
Slide 13: Increased Sanctioning on NCS Driven by Tax Incentives
Increased Sanctioning on NCS Driven by Tax Incentives Orange = won by Aker Solutions NCS Expected NCS prospects and already awarded projects Alke Garantiana Linnorm Tommeliten Alpha Askeladd West Grane D, F Melkøya electrification Trine & Trell Breidablikk Grevling Oseberg elec
Slide 14: Transition Journey On Track
Transition Journey On Track 1Q 2021 – Order Intake NOK billion 1Q 2021 – Tendering NOK billion ~30% ~35% 9.4 Energy Transition order intake Other order intake 78 Energy Transition tenders Other ongoing tenders NOK Billion NOK Billion ■ About 35 percent of the first quarter order intake was ■ About 3
Slide 15: Ongoing Work Within Energy Transition
Ongoing Work Within Energy Transition Jansz Brevik CCS Northern Lights Norfolk Subsea gas compression Carbon capture facility Storage of captured CO2 HVDC converter platforms Photo: Aker Carbon Capture Photo: Equinor Heimdal and Empire Wind Arctic Offshore Troll West Veslefrikk Farming Electrificati
Slide 16: Ongoing Projects Within Energy Transition
Ongoing Projects Within Energy Transition Hywind Tampen The World’s Largest Offshore Floating Wind Farm ■ Milestone for float-out of all 11 concrete foundations on April 22, 2021 ■ Next phase is to continue concrete slipforming to give hulls 107.5 meters height 2021 © Aker Solutions First-Quarter Re
Slide 17: Complete Offshore Wind Solutions
Complete Offshore Wind Solutions Converter Gravity-Based Cables Steel Jacket Marine Operations Floating Platforms Structures and Accessories Substructures and Maintenance Services Foundations 2021 © Aker Solutions
Slide 18: NOK 78 Billion of Tendering
26 NOK BILLION 13 NOK BILLION 5 NOK BILLION NOK 78 Billion of Tendering 12 NOK BILLION 10 NOK BILLION Tendering by Reporting Segment NOK Billion 12 NOK BILLION Renewables and Field Development 39 Subsea 29 EMM1 10 1 Electrification, Maintenance and Modifications) 2021 © Aker Solutions
Slide 19: On Track – Positive Outlook
On Track – Positive Outlook Short-Term Medium-Term Building a Stronger Foundation Repositioning and Transforming ■ Health, safety and quality ■ Leverage NCS tax relief projects ■ Business continuity through the pandemic ■ Growth in renewables and low-carbon ■ Maintain strong position in global O&G m
Slide 20: Q&A
Q&A Kjetel Digre and Idar Eikrem 2021 © Aker Solutions
Slide 21: Additional Information
Additional Information 2021 © Aker Solutions First-Quarter Results 2021 May 5, 2021 Slide 21
Slide 22: High Demand for Early-Phase Capabilities
High Demand for Early-Phase Capabilities ■ 32 front-end contracts awarded in 1Q 1Q 2021 1Q 2020 ■ 34% related to Energy Transition 32 42 ■ 3 FEEDs converted to projects Total ■ 5 studies converted to FEEDs front-end studies Typical Ongoing Studies ■ Oil and gas ■ Electrification Energy Transition sh
Slide 23: Nordsee Ost Arbitration Ruling
Nordsee Ost Arbitration Ruling Background ■ During the first quarter 2021, Aker Solutions received the final ruling from an arbitration tribunal in Germany in a proceeding between Aker Solutions and a German multinational energy company ■ The arbitration was filed by Kvaerner in 2012 and concerned t
Slide 24: Guidance 2021 – Additional Items
Guidance 2021 – Additional Items Guidance ■ Net financial items1 about minus NOK 80 million, per quarter ■ D&A2 about NOK 1.1 to 1.2 billion, per year ■ ‘Other’ EBITDA3 about minus NOK 50 to 100 million, per quarter ■ Capex and R&D about 30% reduction in 2021 vs. 2020 ■ Working capital about NOK -50
Slide 25: Tendering for NOK 78 Billion
Tendering for NOK 78 Billion about 30% related to Energy Transition Renewables and Electrification, Maintenance Subsea Field Development and Modifications Complete subsea production Renewables and decarbonization Decarbonization solutions for systems and life cycle services incl. solutions for
Slide 26: Transition Journey Underway
Transition Journey Underway ■ Ambition to grow revenue base Revenue NOK billion Oil & Gas Renewables & Decarbonization by about 10% annually towards 2025 >43 ■ NOK 41 billion backlog, and 38 NOK 78 billion ongoing tenders 34 per 1Q 2021 29 ■ Strong position within Energy Transition (incl. renewables
Slide 27: Transition Journey Underway
Transition Journey Underway Cost Reduction and Synergies Capex NOK billion Capital Structure NOK billion NOK billion (excl. dividend, and IFRS 16) -30% 1.2 Per 1Q 2021 Cash generation, target 3.0 Cash generation, ambition 3.5 3.0 0.6 -30% 0.4 0.4 0.8 2.7 Overhead Cost improvements Target overhead 20
Slide 28: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. Aker Solutions ASA merged with Kvaerner ASA in November 2020. The consolidated financial statement
Slide 29: Alternative Performance Measures
Alternative Performance Measures Profit Measures Electrification, Renewables & Field EBITDA and EBIT terms are presented as they are used by Development Maintenance & Subsea Other/eliminations Aker Solutions financial analysts and investors. Special items are excluded from NOK million Modifications
Slide 30: Alternative Performance Measures
Alternative Performance Measures Financing Measures Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many Alternative financing and equity measures are presented as they are i
Slide 31: Alternative Performance Measures
Alternative Performance Measures Order Intake Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the peri
Slide 32: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 Restructuring 3 10 12 46 70 155 117 183 61 516 2 Non-qualifying hedges (2) (4) 5 1 0 10 (8) (1) (5) (4) (7) Gain on dividend distribution of CCUS an
Slide 33: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 Revenue 9,226 9,251 9,636 10,049 38,163 8,601 6,721 7,198 6,875 29,396 6,470 Operating expenses (8,467) (8,510) (8,933) (9,542) (35,452) (8,604) (6,340)
Slide 34: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Property, plant and equipment 3,934 3,947 4,160 4,229 4,394 4,051 3,912 3,567 3,400 Intangible assets 6,419 6,317 6,397 6,450 6,325 6,155 6,002 5,825 5,806 Right-of-use assets 4,422 4,07
Slide 35: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Total equity attributable to the parent 10,724 10,325 10,729 10,526 10,675 9,879 9,141 7,870 7,784 Non-controlling interests 107 123 110 97 78 78 58 38 38
Slide 36: Cashflow
Cashflow NOK million Cashflow 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 EBITDA 759 742 703 508 2,711 (3) 382 1,077 83 1,539 429 Change in cashflow from operating activities (1,101) (488) (951) 474 (2,066) (522) (487) (194) 517 (686) 53 Net cashflow from
Slide 37: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 Renewables & Field Development 3,370 2,972 3,552 3,872 13,765 3,110 2,303 2,538 2,879 10,829 2,750 Electrification, Maintenance & Modifications 3,094 3,502 3,528 3,354 13,477
Slide 38: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Renewables & Field Development (759) (655) (295) (347) (151) 128 23 (945) (431) Electrification, Maintenance & Modifications (153) 2 244 (215) 119 75 (278) (235) 111 Subsea 416 305 735 616 1,23
Slide 39: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 Renewables & Field Development 243 311 165 34 753 (107) 204 193 259 549 248 Electrification, Maintenance & Modifications 258 19
Slide 40: 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 41: 2021 © Aker Solutions
2021 © Aker Solutions