Slide 1: 1Q 2020
1Q 2020 Fornebu, April 30, 2020 Luis Araujo and Ole Martin Grimsrud 2020 © Aker Solutions
Slide 2: Agenda | 1Q 2020
Agenda | 1Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions First-Quarter Results 2020 April 30, 2020 Slide 2
Slide 3: Main Developments
Main Developments Brent Oil Price | 1Q 2020 (USD) 70 60 50 40 ■ Outbreak of COVID-19 pandemic 30 ■ Oil prices fall to new lows 20 ■ Operators cutting 2020+ capex by 20-30 percent ■ Implementing both immediate actions and 10 lasting changes to address dual challenge 0 ■ Maintaining productivity in ke
Slide 4: COVID-19 Outbreak Impact
COVID-19 Outbreak Impact Impact ■ Offshore work postponed Moss ■ Travel restrictions Actions ■ 850 temporary layoffs ■ Demobilization of 3,300 contractors Mobile Egersund Productivity ■ Good execution on key projects to clients like Equinor, CNOOC and more Photo: Even Kleppa / Equinor Photo: Christo
Slide 5: Key Figures | 1Q 2020
Key Figures | 1Q 2020 Revenue EBITDA Order Intake Order Backlog 6.5 NOK BILLION 149 NOK MILLION 6.6 NOK BILLION 26.4 NOK BILLION Excl. special items 8 700 6 40 7 600 5 6 30 500 4 5 400 4 3 20 300 3 2 200 2 10 1 1 100 0 0 0 0 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 1Q 19 2Q 19 3Q
Slide 6: New Orders
New Orders Front-End 1Q 2020 1Q 2019 Brunei Shell Petroleum Total front-end studies 42 31 Brownfield Services Contract in Brunei Concept Studies leading to FEEDs 7 9 Chevron FEEDS leading to projects 1 2 20-Year Umbilicals Master Agreement 2020 © Aker Solutions First-Quarter Results 2020 April 30, 2
Slide 7: Swift and Decisive Action Taken
Swift and Decisive Action Taken ■ Offshore operators have cut investment Capex Cuts Planned E&P cuts by major oil players for 2020 plans for 2020 by more than 20% USD Billion Source: Rystad Energy research and analysis ■ Aker Solutions to cut 2020 capex to about 25 25 Investments before cuts NOK 500
Slide 8: Outlook
Outlook Short-Term Medium-Term Long-Term Uncertain and 2020 Revenue Seen Positioning for Disruptive 2Q Down About 30% Future Market ■ Health and safety ■ Greenfield projects ■ 20/25/30 strategy ■ Business continuity delayed remains firm ■ Resilient subsea services ■ Energy transition ■ Cost reductio
Slide 9: Agenda | 1Q 2020
Agenda | 1Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions First-Quarter Results 2020 April 30, 2020 Slide 9
Slide 10: 1Q 2020 | Income Statement
1Q 2020 | Income Statement NOK million 1Q 2020 1Q 2019 2019 ■ First quarter revenue decreased by 10% year-on-year Revenue 6,510 7,256 29,263 ■ Mainly driven by Field Design, as previously guided EBITDA 149 634 2,244 following the record activity last year EBITDA margin 2.3% 8.7% 7.7% EBITDA ex. spec
Slide 11: 1Q 2020 | Cashflow and Financial Position
1Q 2020 | Cashflow and Financial Position ■ Working capital1 at NOK 1,053 million Debt Maturity Profile2 NOK million ■ Cashflow from operations at minus NOK 299 million 6,000 Drawn debt Undrawn revolving credit facility ■ Cashflow from investments at minus NOK 261 million 4,000 ■ Net interest-bearin
Slide 12: Projects
Projects ■ Lower activity mainly driven by Field Design as ■ EBIT margin1 of 2.0% vs 4.7% a year earlier anticipated, following the record activity last year ■ Order intake of NOK 2.7 billion, equal to ■ Revenue down 14% year-on-year to NOK 5.1 billion 0.5x book-to-bill ■ EBITDA margin1 of 6.0% vs 8
Slide 13: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by continued progress on ongoing projects ■ Lower activity as previously guided, following record year ■ Revenue stable at NOK 2.3 billion year-on-year in 2019 ■ Order intake of NOK 1.4 billion, equal to 0.6x book-to-bill ■ Revenue down 21%
Slide 14: Services
Services ■ Topside brownfield maintenance impacted by COVID-19 ■ EBIT margin1 of 1.1% vs 9.3% a year earlier ■ Activity more resilient within Subsea Lifecycle Services ■ Strong order intake of NOK 4 billion, equal to ■ Revenue up 7% year-on-year to NOK 1.4 billion 2.8x book-to-bill ■ EBITDA margin1
Slide 15: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 1Q 2020 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion Potential additional revenue from existing agreements Order backlog Order intake 11.4 40 Projects backlog Services backlog 7.6 30 3.3 3.7 3.7 20 3.1 33.3 29.
Slide 16: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and Cashflow ■ Unprecedented impacts of the COVID-19 ■ Working Capital likely to fluctuate with large pandemic with steep decline in oil demand and project work and continue to trend around the commodity prices, resulting in significant NOK 1.0 to
Slide 17: Agenda | 1Q 2020
Agenda | 1Q 2020 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions First-Quarter Results 2020 April 30, 2020 Slide 17
Slide 18: Additional Information
Additional Information 2020 © Aker Solutions First-Quarter Results 2020 April 30, 2020 Slide 18
Slide 19: 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. The financial information is not reported according to the requirements in IAS 34 (Interim Financi
Slide 20: Alternative Performance Measures
Alternative Performance Measures Profit Measures NOK million Projects Services Other/eliminations Aker Solutions EBITDA and EBIT terms are presented as they are used by financial 1Q 2020 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q 2019 1Q 2020 1Q 2019 analysts and investors. Special items are excluded from E
Slide 21: 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 22: 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 signed contracts in the period in add
Slide 23: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 Restructuring 7 5 31 (3) 39 3 10 12 46 70 155 Non-qualifying hedges (3) (4) (3) (1) (11) (2) (4) 5 1 0 10 (Gain) loss sale of PPE (50) - - - (50) -
Slide 24: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 Revenue 5,483 6,254 6,541 6,954 25,232 7,256 7,525 7,134 7,348 29,263 6,510 Operating expenses (5,057) (5,815) (6,078) (6,471) (23,422) (6,622) (6,902) (
Slide 25: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Property, plant and equipment 3,077 2,977 2,905 3,044 2,945 2,916 3,031 3,065 3,235 Intangible assets 5,695 5,646 5,596 5,686 5,690 5,578 5,669 5,710 5,589 Right-of-use assets - - - - 4,
Slide 26: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Total equity attributable to the parent 6,822 6,828 6,849 7,502 7,241 7,044 7,355 7,134 7,411 Non-controlling interests 25 28 45 106 107 123 110 97 78 Tot
Slide 27: Cashflow
Cashflow NOK million Cashflow 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 EBITDA continuing operations 425 439 463 483 1,810 634 623 553 434 2,244 149 Change in cashflow from operating activities 107 (121) (506) (370) (890) (937) (568) (726) 306 (1,925) (4
Slide 28: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 Projects 4,239 4,862 5,211 5,608 19,920 5,952 6,015 5,627 5,658 23,253 5,119 Services 1,159 1,337 1,277 1,324 5,096 1,299 1,503 1,549 1,645 5,995 1,386 Other 89 58 72 78 298
Slide 29: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Projects (1,350) (1,540) (1,067) (1,141) (262) (66) 502 (239) 27 Services 550 646 633 693 908 936 896 844 909 Other (622) (521) (591) (306) (398) (139) (71) 176 117 NCOA (1,422) (1,415) (1,024)
Slide 30: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 Projects 322 328 373 348 1,371 478 475 455 372 1,780 305 Services 135 173 190 194 692 187 210 174 169 740 78 Other (74) (60) (7
Slide 31: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 Subsea 1,956 2,084 2,079 2,042 8,162 2,439 2,343 2,171 2,309 9,262 2,349 Field Design 2,284 2,810 3,170 3,551 11,814 3,512 3,680 3,450 3,362 14,004 2,770 Eli
Slide 32: 2020 © Aker Solutions
2020 © 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