Slide 1: 3Q 2021
3Q 2021 Fornebu, October 27, 2021 Kjetel Digre and Idar Eikrem #PowerTheChange November 4, 2021: Updated Backlog by Execution Year on slide 15 2021 © Aker Solutions
Slide 2: 3Q 2021 | Transition Journey On-Track
3Q 2021 | Transition Journey On-Track Revenue Excluding special items EBITDA Excluding special items Financials and Outlook 7.3 NOK BILLION 459 NOK MILLION ■ Financials continue on-track with targets 10 600 ■ Six consecutive quarters well above 1.0x book-to-bill 8 400 ■ Continued high tendering acti
Slide 3: Six Consecutive Quarters of >1.0x Book-to-Bill
3Q 2021 | Six Consecutive Quarters of >1.0x Book-to-Bill Renewables and Electrification, Subsea Field Development Maintenance and Modifications NOK 5.0 billion NOK 2.2 billion NOK 2.5 billion ■ Sunrise offshore wind, HVDC ■ Tommeliten, topside modification ■ Kobra East & Gekko, subsea platform for Ø
Slide 4: NOK 80 Billion of Tendering
33 NOK BILLION 15 NOK BILLION NOK 80 Billion of Tendering About 25% Related to Energy Transition 6 NOK BILLION 9 NOK BILLION Tendering by Reporting Segment NOK Billion 17 NOK BILLION Renewables and Field Development 48 Subsea 28 EMM1 4 1Electrification, Maintenance and Modifications 2021 © Aker Solu
Slide 5: Selected Large Areas to be Developed on the NCS
Selected Large Areas to be Developed on the NCS NOAKA (Greenfield) Wisting ■ FEEDs for Noa Fulla awarded, potentially representing a Significant Activity Growth Expected on the NCS2 Barents Sea value of around NOK 12 billion to Aker Solutions1 35 Rystad estimate 32 Sanctioned 30 ■ Topsides and subse
Slide 6: Transition Journey Well Underway
Transition Journey Well Underway Hywind Tampen Northern Lights Norcem CCS Sunrise Wind Offshore wind Storage of captured CO2 Carbon capture facility HVDC platform Photo: Equinor Photo: Aker Carbon Capture Our solutions reduce CO2 emissions equivalent to 800,000 fossil-fuel cars every year Jansz Arct
Slide 7: Solving Customer Needs to Greatly Reduce Emissions
Solving Customer Needs to Greatly Reduce Emissions Troll Phase 3 Troll West Electrification 0.1 kg ~18 kg 500,000 250,000 CO2 EMISSIONS PER BOE CO2 EMISSIONS PER BOE TONNES OF CO2 EMISSIONS NUMBER OF FOSSIL CARS FOR TROLL PHASE 3 IS THE GLOBAL AVERAGE REDUCED PER YEAR REMOVED PER YEAR BOE: Barrels o
Slide 8: On-Track With Targets – Positive Outlook
On-Track With Targets – Positive Outlook Short-Term Medium-Term Building a Stronger Foundation Repositioning and Transforming ■ Health, safety and quality ■ Leverage increased NCS activity ■ Maintain strong position in global oil & gas ■ Growth in renewables and transitional market solutions for oil
Slide 9: Financial Performance
Financial Performance Idar Eikrem, CFO 2021 © Aker Solutions
Slide 10: 3Q 2021 | Transition Journey On-Track
3Q 2021 | Transition Journey On-Track NOK million 3Q 2021 3Q 2020 2020 Financials continue on-track with plans, order backlog Revenue 7,314 7,198 29,396 increased by 27% from same quarter last year 1 Revenue ex. special items 7,311 6,393 28,548 EBITDA 441 1,077 1,539 ■ Revenue1 of NOK 7.3 billion EB
Slide 11: Solid Finances – Net Cash Position of NOK 1.1 billion
Solid Finances – Net Cash Position of NOK 1.1 billion 2 ■ Working capital1 at minus NOK 666 million Debt Maturity Profile2 NOK billion ■ Cashflow from operations at NOK 576 million 6 Undrawn revolving credit facility Drawn debt 5.0 ■ Cashflow from investments at minus NOK 23 million 4 ■ Net cash pos
Slide 12: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 ■ Revenue of NOK 2.5 billion 2.5 NOK BILLION 89 NOK MILLION ■ Recently awarded projects in early phases of execution 4 400 12% ■ EBITDA1 of NOK 89 million (3.6% margin) 3 300 9% 9% 9% ■ Several projects in early phases of execution 8% ■ Com
Slide 13: Electrification, Maintenance and Modifications (EMM)
Electrification, Maintenance and Modifications (EMM) Revenue EBITDA and Margin1 ■ Revenue of NOK 2.4 billion 2.4 NOK BILLION 126 NOK MILLION ■ Slight increase year-on-year driven by good progress on ongoing projects 4 200 10% 3 100 4% 4% 5% 5% 5% ■ EBITDA1 of NOK 126 million (5.2% margin) ■ Increase
Slide 14: Subsea
Subsea Revenue EBITDA and Margin1 ■ Revenue of NOK 2.4 billion 2.4 NOK BILLION 336 NOK MILLION ■ Starting to progress on recently awarded projects 4 500 20% ■ EBITDA1 of NOK 336 million (14.1% margin) 3 400 14% 15% ■ Driven by solid performance on ongoing projects in the 300 12% 9% 11% period 2 10%
Slide 15: Solid Order Backlog and Visibility
Solid Order Backlog and Visibility Order Backlog by Execution Year NOK billion Renewables and Energy Transition share1 NOK billion, % 25 22.7 November 4, 2021: Updated backlog phasing per year Order Backlog Renewables & Energy Transition share1 Other 20 3Q 2020 3Q 2021 8,1 15 6,6 9.0 8.6 10 8.2 8% 3
Slide 16: Summary Outlook
Summary Outlook On-track with targets ■ 2021 overall revenue now seen at around NOK 29 billion High secured backlog ■ 2021 overall underlying EBITDA continues to be seen up High tendering activity and positive outlook for from 2020 to around the 6.0% level project sanctioning ■ Based on secure
Slide 17: Q&A
We solve global energy challenges —T for future generations @ @ ¥¢
Slide 18: Additional Information
Additional Information 2021 © Aker Solutions Third-Quarter Results 2021 October 27, 2021 Slide 18
Slide 19: Guidance – Additional Items
Guidance – Additional Items ■ 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 100 million, per quarter ■ Working capital in the range around NOK -700 to 0 million 1 Excluding the effects of currency and non-
Slide 20: High Demand for Early-Phase Capabilities
High Demand for Early-Phase Capabilities ■ 16 front-end contracts awarded in 3Q ■ 27% of studies related to Energy YTD 2021 YTD 2020 Transition ■ 14 studies converted to FEEDs year-to-date ■ First projects related to NCS activity increase entering FEED-phase, with several ongoing in study- and Total
Slide 21: Transition Journey – Our Targets
Transition Journey – Our Targets All numbers in NOK billion Grow revenue about 10% annually NOK 1 billion+ annual free cash flow2 towards 2025 Renewables & Energy Transition share 1 Net cash position Cash generation Renewables & Energy Transition1 (per 3Q 2021) ambition 3.0 50 >43 1/3 of revenues
Slide 22: Renewables and Energy Transition
Renewables and Energy Transition Definition Revenue from work related to renewables and transitional solutions incl. advanced and cleaner fossil-fuel solutions (ref. UN SDG 7.a). These solutions and technologies include offshore wind, carbon capture, utilization and storage (CCUS), electrification o
Slide 23: 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 24: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Electrification, EBITDA and EBIT terms are presented as they are used by Field Development Maintenance & Subsea Other/eliminations Aker Solutions NOK million Modifications financial analysts and investors. Special items are excluded from
Slide 25: 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 26: 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 27: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 Restructuring 12 46 70 155 117 183 61 516 2 3 19 Non-qualifying hedges 5 1 0 10 (8) (1) (5) (4) (7) (2) (1) Gain on dividend distribution of CCUS an
Slide 28: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 Revenue 9,636 10,049 38,163 8,601 6,721 7,198 6,875 29,396 6,470 7,020 7,314 Operating expenses (8,933) (9,542) (35,452) (8,604) (6,340) (6,122) (6,792)
Slide 29: Cashflow
Cashflow NOK million Cashflow 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 EBITDA 703 508 2,711 (3) 382 1,077 83 1,539 429 388 441 Change in cashflow from operating activities (949) 407 (2,134) (511) (472) (182) 529 (638) 53 (129) 135 Net cashflow from oper
Slide 30: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Property, plant and equipment 4,160 4,229 4,394 4,051 3,912 3,567 3,400 3,397 3,262 Intangible assets including Goodwill 6,397 6,450 6,325 6,155 6,002 5,825 5,806 5,768 5,743 Right-of-us
Slide 31: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Total equity attributable to the parent 10,729 10,526 10,675 9,879 9,141 7,870 7,784 7,903 7,870 Non-controlling interests 110 97 78 78 58 38 38 37 35 Tot
Slide 32: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 Renewables & Field Development 3,552 3,872 13,765 3,110 2,303 2,538 2,879 10,829 2,750 2,655 2,499 Electrification, Maintenance & Modifications 3,528 3,354 13,477 2,693 2,111
Slide 33: Split Per Segment
Split Per Segment NOK million Net Current Operating Assets (NCOA) 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 NCOA 743 177 660 929 312 (280) (118) (398) (666) Order intake 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 Renewables &
Slide 34: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 Renewables & Field Development 165 34 753 (107) 204 193 259 549 248 95 89 Electrification, Maintenance & Modifications 186 414
Slide 35: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 3Q 2020 3Q 2021 Africa 4% 3% Asia Pacific 12 % 21 % North America 9% 13 % Norway 71 % 60 % Europe 1% 1% South America 3% 3% Total 100 % 100 % Total amount in NOK billion 38.1 48.4 2021 © Aker Solutions Third-Quarter Results 2021 October
Slide 36: 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 37: 2021 © Aker Solutions
2021 © Aker Solutions