Slide 1: 4Q 2017
4Q 2017 Fornebu, February 7, 2018 Luis Araujo and Svein Stoknes © 2018 Aker Solutions
Slide 2: Agenda | 4Q 2017
Agenda | 4Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Fourth-Quarter Results 2017 February 7, 2018 Slide 2
Slide 3: Main Developments
Main Developments Umbilicals system for Egypt’s Zohr gas field Johan Castberg orders ■ Increasing signs of recovery, ■ Highest quarterly order intake ■ Steady tendering activity though market still challenging in nearly four years, spurred by ■ Robust financial position with ■ Major projects progres
Slide 4: Key Figures | 4Q 2017
Key Figures | 4Q 2017 Revenue EBITDA Order Intake Order Backlog 6.4 NOK BILLION 458 NOK MILLION 13.4 NOK BILLION 34.6 NOK BILLION Reported Excl. special items 7 600 14 35 6 500 12 30 5 10 25 400 4 8 20 300 3 6 15 200 2 4 10 1 100 2 5 0 0 0 0 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 4Q 16 1Q 17 2Q 17 3Q 17 4Q 1
Slide 5: Key Figures | 2017
Key Figures | 2017 Revenue EBITDA Order Intake Order Backlog 22.5 NOK BILLION 1.5 NOK BILLION 23.5 NOK BILLION 34.6 NOK BILLION Reported Excl. special items 35 3.0 50 50 30 2.5 40 40 25 2.0 30 30 20 1.5 15 20 20 1.0 10 10 10 5 0.5 0 0.0 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014
Slide 6: New Orders
New Orders Photo: Statoil Johan Castberg subsea production Contract from Sembcorp Marine to Subsea services framework system and topside design orders design Johan Castberg FPSO living agreement for Statoil-operated fields from Statoil quarters offshore Norway Subsea orders for Ærfugl, Skogul Order
Slide 7: Record Demand for Early-Phase Capabilities
Record Demand for Early-Phase Capabilities ■ Awarded 27 front-end contracts in 4Q, resulting in all-time high 2017 2016 of 124 awards in 2017 ■ One third won with subsea alliance partners Total front-end awards 124+53% 81 ■ 26 concept studies led to FEEDs ■ A record 12 FEEDs led to fully-fledged pro
Slide 8: Johan Castberg: From Concept to Fully-Fledged Project
Johan Castberg From Concept to Fully-Fledged Project Installation Lifecycle Services FPSO FPSO FPSO FPSO concept study extended concept study FEED engineering, procurement and management assistance Subsea Subsea Subsea Subsea Production System concept study pre-FEED phases FEED engineering, procurem
Slide 9: Achieved target to boost cost-efficiency by at least 30 percent
Achieved target to boost Minimum 20 percent cost-efficiency by at least additional cost-efficiency 30 percent by end of 2017 improvement by end of 2021 30% 20% 2015 2017 2021 © 2018 Aker Solutions
Slide 10: Sustainable Energy Solutions
Sustainable Energy Solutions Offshore Floating Wind Subsea Gas Compression Electrification Carbon Capture Photo: Principle © 2018 Power Aker Solutions Fourth-Quarter Results 2017 February 7, 2018 Slide 10
Slide 11: Outlook
Outlook ■ Market outlook for oil services remains challenging, though increasing signs of recovery ■ Industry improvement measures are lowering break-even costs and spurring project sanctions ■ Steady tendering in main markets, where key projects are seen sanctioned over next six months ■ Well place
Slide 12: Agenda | 4Q 2017
Agenda | 4Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Fourth-Quarter Results 2017 February 7, 2018 Slide 12
Slide 13: 4Q 2017 | Income Statement
4Q 2017 | Income Statement (NOK million) 4Q 2017 4Q 2016 2017 2016 ■ Revenue for 4Q 2017 up 5% Revenue 6,444 6,138 22,461 25,557 EBITDA 458 380 1,519 1,929 vs. last year ■ Reflecting higher activity EBITDA margin 7.1% 6.2% 6.8% 7.5% level in Field Design and EBITDA ex. special items1 482 539 1,665 2
Slide 14: 4Q 2017 | Cashflow and Financial Position
4Q 2017 | Cashflow and Financial Position ■ Cashflow from operations NOK 1.2 billion Debt Maturity Profile2 NOK million ■ Working capital minus NOK 844 million Drawn debt 6,000 ■ Net debt NOK 970 million and leverage 0.7x Undrawn credit facilities ■ Gross debt of NOK 3.1 billion 4,000 3,750 ■ Availa
Slide 15: Projects
Projects ■ Major projects continue to progress as planned on ■ EBIT margin1 of 5.3% vs 4.5% a year earlier strong execution ■ Strong order intake of NOK 9.7 billion, equal to 1.9x ■ Revenue up 2% to NOK 5.2 billion vs a year earlier book-to-bill ■ EBITDA margin1 of 7.8% vs 7.6% a year earlier ■ Orde
Slide 16: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Subsea activity up from previous quarters, however ■ Brownfield activity continues to improve slightly down from a year earlier ■ Revenue rose 15% to NOK 2.8 billion vs year earlier ■ Very strong order intake of NOK 5.7 billion, equal to ■ Order intake of
Slide 17: Services
Services ■ Increased activity level within production asset ■ EBIT margin1 of 8.4% vs 12.6% a year earlier services ■ Strong order intake of NOK 3.6 billion, equal to 3.1x ■ Revenue rose 11% to NOK 1.2 billion vs year earlier book-to-bill ■ EBITDA margin1 of 12.9% vs 15.9% a year earlier ■ Order bac
Slide 18: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 4Q 2017 Order Backlog by Execution Date NOK million Order Backlog and Intake Evolution NOK million Order backlog Order intake Potential additional revenue from existing agreements 40 Projects backlog Services backlog 35 4.8 34.6 30 31.2 30.7 30.7 25 27.2 13.
Slide 19: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and ■ Positive long-term offshore, Cashflow deepwater outlook ■ Capex and R&D ≈ 2% of annual ■ Markets remain challenging but revenue, with flexibility increasing signs of a gradual ■ Working capital likely to fluctuate recovery around large projec
Slide 20: Agenda | 4Q 2017
Agenda | 4Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions Fourth-Quarter Results 2017 February 7, 2018 Slide 20
Slide 21: Additional Information
Additional Information © 2018 Aker Solutions Fourth-Quarter Results 2017 February 7, 2018 Slide 21
Slide 22: Special Items
Special Items NOK million Special items (EBITDA) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 Onerous leases 52 58 40 114 265 - 4 39 39 82 - 6 - 33 40 Restructuring 0 2 41 373 416 15 19 0 130 163 (1) 81 8 (2) 86 Non-qualifyin
Slide 23: General
General Basis for Preparation This presentation provides financial Alternative Performance Special Items Impacting Profit Measures highlights for the quarter for Aker Solutions, a Norwegian limited company Measures NOK million Projects 4Q 2017 4Q 2016 Services 4Q 2017 4Q 2016 Other/elim inations 4Q
Slide 24: General
General Order Intake Measures Financing Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, Alternative financing and equity measures are presented as they are indicators of the company’s ability as they are indicators of the company’s reve
Slide 25: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 Revenue 7,864 31,896 6,463 6,969 5,987 6,138 25,557 5,173 5,425 5,419 6,444 22,461 Operating expenses (7,682) (30,055) (5,955) (6,405) (5,509) (5
Slide 26: Balance Sheet
Balance Sheet NOK million Assets 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Property, plant and equipment 3,962 3,882 3,934 3,735 3,808 3,721 3,564 3,341 3,316 Intangible assets 6,539 6,403 6,306 6,305 6,314 6,280 6,525 6,344 6,447 Financial assets (non-current) 16 16 16
Slide 27: Cashflow
Cashflow NOK million Cashflow 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 EBITDA continuing operations 182 1,841 508 563 477 380 1,929 355 305 401 458 1,519 Change in cashflow from operating activities 1,414 93 (836) (1,094) (769) 1,081 (1,617) (25
Slide 28: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 Projects 6,335 25,690 5,051 5,474 5,003 5,100 20,627 4,066 4,232 4,184 5,179 17,660 Services 1,551 6,281 1,476 1,449 1,019 1,057 5,001 1,068 1,156 1,165 1,170 4,560 O
Slide 29: Split Per Segment
Split Per Segment NOK million NCOA 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Projects (2,477) (1,805) (1,309) (223) (1,297) (810) (239) 151 (712) Services 1,145 1,143 1,493 824 921 640 603 595 511 Other (275) (271) (283) (185) (528) (803) (818) (731) (643) NCOA (1,607)
Slide 30: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 Projects 524 1,749 386 436 393 387 1,602 269 295 323 405 1,292 Services 200 988 158 176 116 168 618 152 147 157 151 607 Othe
Slide 31: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 Subsea 3,899 15,278 2,992 3,360 2,873 2,693 11,917 2,182 1,883 1,801 2,471 8,336 Field Design 2,506 10,610 2,075 2,130 2,133 2,414 8,751 1,887 2,353
Slide 32: © 2018 Aker Solutions
© 2018 Aker Solutions
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