Slide 1: 4Q 2018
4Q 2018 Fornebu, February 8, 2019 Luis Araujo and Svein Stoknes © 2019 Aker Solutions
Slide 2: Agenda | 4Q 2018
Agenda | 4Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2019 Aker Solutions Fourth-Quarter Results 2018 February 8, 2019 Slide 2
Slide 3: Main Developments
Main Developments Delivery of last subsea tree to Moho North Johan Sverdrup phase II begins ■ Activity is picking up, though ■ Strong period of execution, ■ On track with phase 2 of market remains competitive and high tendering activity cost-efficiency improvement ■ Major projects progressing ■ Rema
Slide 4: Key Figures | 4Q 2018
Key Figures | 4Q 2018 Revenue EBITDA Order Intake Order Backlog 7.0 NOK BILLION 483 NOK MILLION 5.3 NOK BILLION 35.1 NOK BILLION Excl. special items 7 500 14 40 450 35 6 12 400 30 5 350 10 25 4 300 8 250 20 3 6 200 15 2 150 4 10 100 1 2 5 50 0 0 0 0 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 4Q 17 1Q 18 2Q 18 3Q
Slide 5: Key Figures | 2018
Key Figures | 2018 Revenue EBITDA Order Intake Order Backlog 25.2 NOK BILLION 1.8 NOK BILLION 25.4 NOK BILLION 35.1 NOK BILLION Excl. special items 35 3.0 40 50 30 35 2.5 40 30 25 2.0 25 30 20 1.5 20 15 20 15 1.0 10 10 10 0.5 5 5 0 0.0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015
Slide 6: New Orders
New Orders CNOOC Total Multiple Clients Subsea production system for the Subsea manifold for the Dalia Several umbilicals contracts in Lingshui field offshore China field offshore Angola the U.S. Gulf of Mexico Equinor Vår Energi Multiple Clients Photo: Equinor Photo: Vår Energi First contract on th
Slide 7: Record Demand for Early-Phase Capabilities
Record Demand for Early-Phase Capabilities ■ 46 study awards won in 4Q, resulting in all-time high of 2018 2017 150 studies in 2018 ■ Number of studies secured 150 124 +21% for international markets more Total than doubled in 2018 front-end studies ■ 11 FEEDs led to 53 24 +121% fully-fledged project
Slide 8: Capturing Growth in Africa
Capturing Growth in Africa 6 20+ 150+ 1,000+ COUNTRIES YEARS IN SUBSEA TREES KM OF UMBILICALS AFRICA INSTALLED INSTALLED © 2019 Aker Solutions Fourth-Quarter Results 2018 February 8, 2019 Slide 8
Slide 9: The World's Largest Subsea Development
19 MANIFOLDS The World’s Largest Subsea Development 65 VERTICAL SUBSEA Aker Solutions provided the subsea production system for Total’s Kaombo TREES development offshore Angola 660 MILLION BARRELS OF OIL EQUIVALENTS 2,000 METERS BELOW SEA LEVEL © 2019 Aker Solutions
Slide 10: Harnessing the Wind
Harnessing the Wind Aker Solutions has increased its ownership in Principle Power during the fourth quarter © 2019 Aker Solutions
Slide 11: Outlook
Outlook ■ Well positioned in key growth markets going forward ■ Increasing signs of recovery, though the market remains competitive ■ Differentiating front-end capabilities to capture opportunities ■ Solid order backlog gives good visibility as we enter into 2019 ■ Building on existing capabilities
Slide 12: Agenda | 4Q 2018
Agenda | 4Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2019 Aker Solutions Fourth-Quarter Results 2018 February 8, 2019 Slide 12
Slide 13: 4Q 2018 | Income Statement
4Q 2018 | Income Statement (NOK million) 4Q 2018 4Q 2017 2018 2017 ■ Fourth quarter revenue increased by 8% Revenue 6,954 6,444 25,232 22,461 year-on-year EBITDA 483 458 1,810 1,519 EBITDA margin 7.0% 7.1% 7.2% 6.8% ■ Fourth quarter underlying EBITDA increased by EBITDA ex. special items1 495 482 1,
Slide 14: 4Q 2018 | Cashflow and Financial Position
4Q 2018 | Cashflow and Financial Position ■ Cashflow from operations at NOK 113 million Debt Maturity Profile1 NOK million ■ Working capital solid at minus NOK 753 million 6,000 Drawn debt Undrawn credit facilities ■ Net interest-bearing debt NOK 347 million 4,000 and leverage 0.2x 5,000 ■ Gross deb
Slide 15: Projects
Projects ■ Activity increasing on the back of work awarded end ■ EBIT margin1 of 3.9% vs 5.3% a year earlier of 2017 and early 2018 ■ Order intake of NOK 4.4 billion, equal to ■ Revenue up 8% vs last year to NOK 5.6 billion 0.8x book-to-bill ■ EBITDA margin1 of 6.2% vs 7.8% a year earlier ■ Order ba
Slide 16: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Subsea with continued solid project execution ■ Solid Brownfield activity across several geographies ■ Revenue down 17% to NOK 2.0 billion vs 4Q 2017 ■ Revenue rose 28% to NOK 3.6 billion vs 4Q 2017 ■ Strong order intake of NOK 2.9 billion, equal to ■ Orde
Slide 17: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 11.6% vs 8.4% a year earlier ■ Revenue rose 13% vs last year to NOK 1.3 billion ■ Order intake of NOK 0.8 billion, equal to ■ EBITDA margin1 increased to 14.6% vs 12.9% a 0.6x book-to-bill year earlier ■ Order backlog
Slide 18: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 4Q 2018 Order Backlog by Execution Date NOK billion Order Backlog and Intake Evolution NOK billion 20.7 Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog Services backlog 37.6 37.0 36.1 4.3 35.1 34.6 30 7.4
Slide 19: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and IFRS 16 ■ Positive long-term offshore, Cashflow ■ New IFRS 16 Leasing standard deepwater outlook effective from January 1, 2019 ■ Capex and R&D ≈ 2% of annual ■ Markets remain competitive but revenue, with flexibility ■ Balance sheet: Assets wi
Slide 20: Agenda | 4Q 2018
Agenda | 4Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2019 Aker Solutions Fourth-Quarter Results 2018 February 8, 2019 Slide 20
Slide 21: Additional Information
Additional Information © 2019 Aker Solutions Fourth-Quarter Results 2018 February 8, 2019 Slide 21
Slide 22: Special Items
Special Items NOK million Special items (EBITDA) 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 Onerous leases 39 82 - 6 - 33 40 - - - 15 15 Restructuring 130 163 (1) 81 8 (2) 86 7 5 31 (3) 39 Non-qualifying hedges (18) (44) 3 4 10 (6) 10 (3) (4) (3)
Slide 23: General
General Basis for Preparation Alternative Performance Special Items Impacting Profit Measures This presentation provides financial highlights for the quarter for Aker Measures NOK million Projects Services Other/eliminations Aker Solutions Solutions, a Norwegian limited company Aker Solutions disclo
Slide 24: General
General Financing Measures Net Current Operating Assets (NCOA) or working capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, Alternative financing and equity measures are presented as they are indicators
Slide 25: General
General Order Intake Measures New Leasing Standard (IFRS 16) Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, The new IFRS 16 Leasing standard is effective from January 1, 2019. An on-balance sheet as they are indicators of the company’s revenues
Slide 26: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 Revenue 6,138 25,557 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 Operating expenses (5,759) (23,628) (4,817) (5,120) (5,017) (5
Slide 27: Balance Sheet
Balance Sheet NOK million Assets 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Property, plant and equipment 3,808 3,721 3,564 3,341 3,316 3,077 2,977 2,905 3,044 Intangible assets 6,314 6,280 6,525 6,344 6,447 6,343 6,290 6,204 6,349 Financial assets (non-current) 132 184
Slide 28: Cashflow
Cashflow NOK million Cashflow 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 EBITDA continuing operations 380 1,929 355 305 401 458 1,519 425 439 463 483 1,810 Change in cashflow from operating activities 1,081 (1,617) (257) (762) (615) 702 (932) 107
Slide 29: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 Projects 5,100 20,627 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 Services 1,057 5,001 1,068 1,156 1,165 1,170 4,560 1,159 1,337 1,277 1,324 5,096 O
Slide 30: Split Per Segment
Split Per Segment NOK million NCOA 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Projects (1,297) (810) (239) 151 (712) (1,350) (1,540) (1,067) (1,141) Services 921 640 603 595 511 550 646 633 693 Other (528) (803) (818) (731) (643) (622) (521) (591) (306) NCOA (904) (974)
Slide 31: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 Projects 387 1,602 269 295 323 405 1,292 322 328 373 348 1,371 Services 168 618 152 147 157 151 607 135 173 190 194 692 Othe
Slide 32: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 Subsea 2,693 11,917 2,182 1,883 1,801 2,471 8,336 1,956 2,084 2,079 2,042 8,162 Field Design 2,414 8,751 1,887 2,353 2,386 2,776 9,402 2,284 2,810 3,
Slide 33: © 2019 Aker Solutions
© 2019 Aker Solutions
Slide 34: 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