Slide 1: 1Q 2017
1Q 2017 Fornebu, May 9, 2017 Luis Araujo and Svein Stoknes © 2017 Aker Solutions
Slide 2: Agenda | 1Q 2017
Agenda | 1Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions First-Quarter Results 2017 May 9, 2017 Slide 2
Slide 3: Key Developments
Key Developments Kaombo development offshore Angola Total’s Moho Nord on stream ■ Major projects progress as ■ Robust order backlog of about ■ Acquisition of Reinertsen’s planned NOK 30.7 billion Norwegian oil and gas assets ■ Global improvement program ■ New orders include FEED for ■ Integration of
Slide 4: Key Figures | 1Q 2017
Key Figures | 1Q 2017 Revenue EBITDA Order Intake Order Backlog 5.2 NOK BILLION 355 NOK MILLION 4.6 NOK BILLION 30.7 NOK BILLION 7 600 6 40 6 35 500 5 30 5 400 4 25 4 300 3 20 3 15 200 2 2 10 1 100 1 5 0 0 0 0 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17
Slide 5: New Orders
New Orders Statoil Statoil Kvaerner/Statoil Photo: Statoil Front-end engineering and design Order for hook-up of riser Engineering contract for contract for second phase of platform for Johan Sverdrup field upgrading of Njord A platform in Johan Sverdrup development Norway VNG Norge Multiple Clients
Slide 6: Leading Carbon Capture Technology
Leading Carbon Capture Technology ■ Aker Solutions in April won orders for carbon capture concept studies for Yara ammonia plant and Norcem cement facility in Norway ■ Yara and Norcem in running for government funding to build and operate a full-scale carbon capture plant by 2022 ■ Studies put Aker
Slide 7: Growing a World-Class Services Business
Growing a World-Class Services Business ■ Acquisitions of majority stake in C.S.E. in Brazil and Reinertsen’s oil and gas assets in Norway ■ Boosting position in major services markets ■ Integration processes proceeding as planned, driving synergies and strengthening core competencies © 2017 Aker So
Slide 8: #thejourney
#thejourney Global improvement program targeting More than two-thirds of 30% minimum 30 percent improvement cost-efficiency target achieved in cost-efficiency across company 1Q 2017 NOK © 2017 Aker Solutions 9,000,000,000
Slide 9: Outlook
Outlook ■ Market outlook for oil services remains challenging amid project postponements, volatile oil price ■ Some signs of recovery, as industry improvement measures having an effect ■ Lower project break-even costs likely to spur more project sanctions this year ■ Healthy tendering in main market
Slide 10: Agenda | 1Q 2017
Agenda | 1Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions First-Quarter Results 2017 May 9, 2017 Slide 10
Slide 11: 1Q 2017 | Income Statement
1Q 2017 | Income Statement NOK million 1Q 2017 1Q 2016 2016 ■ Revenue for 1Q 2017 down 20% vs last Revenue 5,173 6,463 25,557 year EBITDA 355 508 1,929 ■ Reflecting lower activity levels, EBITDA margin 6.9% 7.9% 7.5% especially in subsea projects EBITDA ex. special items1 363 521 2,121 EBITDA margin
Slide 12: 1Q 2017 | Cashflow and Financial Position
1Q 2017 | Cashflow and Financial Position ■ Cashflow from operations NOK 98 million Debt Maturity Profile1 NOK million ■ Working capital minus NOK 974 million 6,000 Drawn debt Undrawn credit facilities ■ Net debt NOK 968 million and leverage 0.8x 4,000 5,000 ■ Gross debt at NOK 3.5 billion 2,000 451
Slide 13: Projects
Projects ■ Good progress on major projects, according to plan ■ EBIT margin1 of 3.2%, down from 4.8% a year earlier ■ Revenue down 20% vs last year to NOK 4.1 billion ■ Order intake of NOK 4.1 billion, equivalent to 1.0x ■ EBITDA margin1 of 6.6%, compared with 7.6% a book-to-bill year earlier ■ Orde
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Impacted by lower activity levels ■ New projects not yet offsetting maturing backlog ■ Revenue down 27% vs last year to NOK 2.2 billion ■ Revenue down 10% vs last year to NOK 1.9 billion ■ Order intake of NOK 0.7 billion, equivalent to 0.3x ■ Order intake
Slide 15: Services
Services ■ Impacted by activity slowdown in subsea services ■ EBIT margin1 of 10.6%, up year-on-year from 7.8% and a maturing production asset services portfolio ■ Order intake of NOK 0.5 billion, equivalent to 0.5x ■ Revenue down 28% vs last year to NOK 1.1 billion book-to-bill ■ EBITDA margin1 of
Slide 16: Order Backlog Gives Good Visibility
Order Backlog Gives Good Visibility 1Q 2017 Order Backlog by Execution Date NOK million Order Backlog and Intake Evolution NOK million Potential additional revenue from existing agreements 40 Order backlog Order intake 38.5 Projects backlog Services backlog 35 35.0 30 31.7 31.2 30.7 25 3.1 20 3.4 15
Slide 17: Financial Guidance
Financial Guidance Revenue Balance Sheet and Cashflow ■ Positive long-term offshore, deepwater outlook ■ Capex and R&D ≈ 2% of revenue ■ Near-term uncertainty on timing of awards ■ Several major capex investment plans ■ 2017 Projects revenue expected down around 15-20% from 2016 completed in 2016 ■
Slide 18: Agenda | 1Q 2017
Agenda | 1Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions First-Quarter Results 2017 May 9, 2017 Slide 18
Slide 19: Additional Information
Additional Information © 2017 Aker Solutions First-Quarter Results 2017 May 9, 2017 Slide 19
Slide 20: 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 1Q 2017 Onerous leases 52 58 40 114 265 - 4 39 39 82 - Restructuring 0 2 41 373 416 15 19 0 130 163 -1 Non-qualifying hedges 18 36 25 15 94 -4 -11 -11 -18 -44 3 Other sp
Slide 21: General
General Basis for Preparation This presentation provides financial highlights for Alternative Performance Measures the quarter for Aker Solutions, a Norwegian limited Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS, as such performance measure
Slide 22: General
General Order Intake Measures Financing Measures Order intake, order backlog and book-to-bill ratio are presented as alternative performance measures as Alternative financing and equity measures are presented as they are indicators of the company’s ability they are indicators of the company’s revenu
Slide 23: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 Revenue 8,500 8,048 7,484 7,864 31,896 6,463 6,969 5,987 6,138 25,557 5,173 Operating expenses (7,909) (7,501) (6,963) (7,682) (30,055) (5,955) (6,405) (
Slide 24: Balance Sheet
Balance Sheet NOK million Assets 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Property, plant and equipment 3,586 3,754 3,792 3,962 3,882 3,934 3,735 3,808 3,721 Intangible assets 6,238 6,388 6,518 6,539 6,403 6,306 6,305 6,314 6,280 Financial assets (non-current) 17 17 17
Slide 25: Cashflow
Cashflow NOK million Cashflow 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 EBITDA continuing operations 591 547 521 182 1,841 508 563 477 380 1,929 355 Change in cashflow from operating activities (1,005) (627) 311 1,414 93 (836) (1,094) (769) 1,081 (1,617)
Slide 26: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 Projects 6,913 6,454 5,988 6,335 25,690 5,051 5,474 5,003 5,100 20,627 4,066 Services 1,620 1,654 1,456 1,551 6,281 1,476 1,449 1,019 1,057 5,001 1,068 Other 41 50 104 79 273
Slide 27: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Projects (1,456) (786) (1,098) (2,477) (1,805) (1,309) (223) (1,297) (810) Services 1,687 1,564 1,471 1,145 1,143 1,493 824 921 640 Other (140) (122) (58) (275) (271) (283) (185) (528) (803) NC
Slide 28: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 Projects 456 408 361 524 1,749 386 436 393 387 1,602 269 Services 234 271 283 199 988 158 176 116 168 618 152 Other (24) (32) (13) (
Slide 29: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 Subsea 4,101 3,754 3,524 3,899 15,278 2,992 3,360 2,873 2,693 11,917 2,182 Field Design 2,854 2,747 2,504 2,506 10,610 2,075 2,130 2,133 2,414 8,751 1,887 El
Slide 30: © 2017 Aker Solutions
© 2017 Aker Solutions
Slide 31: 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